US Dollar: Killer App

From the HRA Journal Issue 229,
March 9th, 2015

More of the same.  The US Dollar continues to surge and mow down everything in its path.  The distortions created by these currency moves are getting large enough to be dangerous.  The potential for one or more emerging markets to get into serious trouble based on US denominated debt is quite real now.

Painted Into a Corner:

From the HRA Journal Issue 230,
March 31, 2015

After a month of pain gold traders got some relief thanks to a dovish Fed.   The price hasn’t moved enough to have a big impact but it’s nice to see a bit of green on the screen.  The next US payroll report will define market sentiment for the balance of the spring.  Fed chief Yellen basically said there would be no April rate hike and the wage gains, or lack thereof, in the next payroll report should decide if the first rate increase comes in June or not until autumn. 

Tarnished - Part Two:

From the HRA Journal Issue 227-228,
February 12, 2015

This last of three issues covering my thoughts about 2015 will focus on base metals and a couple of bulk materials with some guesses on major markets.  The editorial was a long one and has been split into two parts of which this is the second. This final installment of the early year market overview deals with bulk minerals, oil and major equity indices.

 

 

HRA is your key to uncovering and profiting from extraordinary resource shares by getting ahead of the crowd.

HRA looks for resource companies with the potential to at least double over one year based on asset or reserve growth through development of metals deposits for production or take over by larger companies. HRA also uncovers high risk/high potential exploration plays, the kind of "swing for the fences" trade that can yield returns of hundreds or even thousands of percent. You choose your comfort zone and which type of company you want to follow. Click here to view HRA’s impressive track record and you’ll understand why we believe that resource stocks should be in every portfolio.

But Aren't Commodities Dead?

No. Metals are basic necessities of modern life and the per capita use of metals rises with income levels. In the past decade several of the world's most populous countries underwent accelerated growth. While countries like China, India and Brazil are currently being impacted by recessionary forces, the changes that spurred their stronger growth are not cyclical. These secular changes occur as per capita income reaches levels that require increased infrastructure spending by government and allow for discretionary spending on things like housing. All advanced economies have gone through these high growth secular periods in the past. The difference is that never in history have so many people in the world been entering the "lower middle class" at the same time. The impact on resource use from this massive change is just beginning to be felt. Remember too that there are several other high population countries like Malaysia, Turkey, Indonesia and Pakistan that are just entering this growth phase now. Collectively, these countries have a population roughly equal to China.

Historically, these sorts of Quality of Life cycles last a full generation or more. We are a bit over 10 years into this one. There will be cyclical slowdowns within the secular trend and individual metals will underperform or outperform depending on their particular supply/demand balance. The mining sector, which we have decades of experience in, will have to struggle just to keep up many times during this trend. Economies turn much faster than metals production. In short, there are more bull runs ahead for various metals and they will start much sooner than most people think. Metals producers and explorers will go from pariahs to market darlings and the change will happen fast when it comes. It has many times before. Buying low and selling high means seeking out the right companies before the market does. HRA can help you do just that.

Latest HRA Media

Video Presentation: Life in a Zero Yield World, Eric Coffin

February 28, 2015

HRA Testimonials

HRA is great at getting the "real" story out on resource companies by doing their due diligence and keeping on top of maps, news releases and corporate development. I highly recommend HRA...to any investor whether it be an institutional client or private investor.