Mar 06, 2019 Guest(s): Bob Thompson Senior VP & Portfolio Manager, Raymond James
According to the "mining clock," a concept used to measure commodity cycles, we are now in the first third of a bull cycle, said Bob Thompson, Senior Vice President & Portfolio Manager of Raymond James.
"The mining clock is just a simple way to see what's happening in the market, reverse engineer that, and then tells you where we are in the cycle - are we near the end of the cycle or the beginning of the cycle, and it tells you if we're in a bull market or a bear market," Thompson told Kitco News on the sidelines of the PDAC 2019.
According to Thompson, mining companies go through natural cycles from becoming overleveraged near the end of a bull run to becoming cash-flow positive, which is where we currently are, and the mining clock indicates that now is a good time to buy.