Branch out or destroy. I think this is an offer from HG Wells.
Okay, okay, I know it’s really “adapt or destroy.” But if HG Wells had managed the investment, not the words, I think it would have adapted the proposal to my version.
In fact, you’ve probably heard the golden knot of investment wisdom. Every investor needs to be familiar, because it is the key to a successful investment.
Simple and straightforward: Never put all your investment eggs in one basket. If the market falls under that basket, your nest egg will spill your savings on the ground.
I know this is an easy tip. You may say that diversification is a smart route, but what exactly should you diversify with?
Today I have an answer to this question: metal mining companies.
If you want to capture the fast pops that most Wall Street tends to kidnap, every investor needs to be exposed to a little bit of miners – especially small-cap miners.
Only the average stock provides access to price volatility. Especially today.
Now many of you may say, “But isn’t that a little risky?”
Absolutely possible. Any sector that sees constant volatility (like crypto assets) can be a bit risky – but much of that risk is managed by developing a plan. This protects you from kneeling or holding on longer than you need to invest.
You just need the right strategy. If you don’t have a place, I’d say you should start looking now, because as the commodity market recovers, the focus is on the mining industry.
According to a report released by PwC last year, the mining industry saw a turning point in 2016. The top 40 mining companies generated $ 20 billion in net profit, more than the $ 28 billion loss in 2015. Meanwhile, ratings rose to 2017.
In fact, the market capitalization of these 40 companies increased by 45% in 2016 to $ 714 billion.
The good news for miners continues.
Take gold, for example. Miners are currently particularly sensitive to rising gold prices. As gold continues to climb (and will rise), gold reserves will increase.
It’s time to go in this area for a long time.
In fact, since early December, the VanEck Vectors Junior Gold Miners ETF (NYSE: GDXJ) has risen above the $ 30 support line. It is now close to 14.8%, a nice rally that could grow further if current levels are exceeded.
All this means that miners are a great bet if you want to diversify more.