Loading ...Re shares/ vs Metal
I beg to differ…..that idea may work if the metal prices are fairly static and way lower than this…up here the miners are going to be earning like bandits , thus the dividends will be massive, as will be the yield….as soon as those yields go north of Treasury rates , the demand for the shares will be enormous, plus shorts have to pay that dividend and face a rising price from dividend hunters and the longs ….who are mainly hard core bugs still, who will not sell at such cheap prices…..thus keeping the mkt thin.
Meanwhile we may well have continued rising metal prices, driving profits even higher……as of now the shares are dirt cheap vs the metal…and we are in a super bull, no way do shares stay lagging this badly in a super bull.
In a stock market that is very, highly valued the one sector that is dirt cheap is PM shares, but potentially paying a better yield than anything else with a super bull mkt in the metals.