Commodities investors have been on a hell of a ride recently…
The chart below is of the TSX Venture Exchange (TSX V). It’s a stock exchange, headquartered in Calgary, Canada, that’s made up of hundreds of small-cap natural resource stocks.
This makes it a good proxy for the small-cap natural resource stock sector.
As you can see, TSX V moves in sharp boom-and-bust cycles. It offers the potential for big upside gains. But the losses that follow can be equally dramatic.
You can also see that we’re still in the bust phase of the current commodities cycle.
TSX V is down almost 80% from its peak in 2011.
A lot of folks see these steep price losses and get scared. But natural resource investing expert Rick Rule, along with value investing expert Dan Ferris, reckon they’ve got it all wrong.
As Rick told me when I talked to him for the June issue of Bonner & Partners Investor Network, the extreme negative sentiment in the gold market means investors could see “explosive” gains from here…
And Dan recently told readers of his Extreme Value advisory that we’re in the midst of one of the “greatest buying opportunities in natural resource stocks of the next decade or two.”
Dan doesn’t advise trying to trade in and out of the highly cyclical commodities sector.
Instead, he’s recommending a single company he believes is a great way to play the next up phase in the natural resource cycle.
It doesn’t produce commodities by hiring armies of people and buying expensive machinery to dig them out of the ground.
In fact, it’s not a mining company at all. And yet it profits from the mining of a broad range of commodities – such as nickel, copper, cobalt, potash, steam coal, and metallurgical coal.
Dan has been “pounding the table” on this stock. In fact, it’s his No. 1 all-time stock recommendation.
That’s why he put together a presentation to explain more about it. But it comes offline tonight at midnight. So read on here before he takes it down.