Not a subscriber? Click here to learn
more.
|
| Home | About Us | Resources | Archive | Free Reports | Market Window |
|
Editor's note: The market is closed tomorrow in observance of Good Friday, so we won't publish DailyWealth. Enjoy the holiday.
Triple-Digit-Upside Potential in a Sector You Haven't Considered...By
Thursday, March 24, 2016
A certain commodity jumped 7% from February 26 to March 4.
That was its largest weekly return since December 2011. And the jump will likely lead to even higher prices. A 32% increase over the next year is possible for this commodity, based on history.
I'm talking about copper...
And as I'll show you, this major move could cause copper miners to soar as well. In fact, triple-digit upside is entirely possible...
Copper prices have been in steep decline... for years. The metal is down more than 50% from its 2011 high. Take a look at this massive downtrend...
 And as you can see, there were several times when copper seemed to be carving out a bottom. But it continued to fall instead of rallying higher. But this instance could be different thanks to copper's recent rally...
Like I said, copper jumped 7% three weeks ago. Weekly gains of that size have only happened 3% of the time over the last 20 years. So this is a rare rally.
In fact, going back to 1996, a 7%-plus weekly jump has only happened 29 other times. And those 29 opportunities were great times to buy. The table below shows what copper prices did after those rallies...
As you can see, copper prices tend to soar after a big one-week rally. On average, we saw a 12% increase in just three months and a huge 32% increase a year later. Of course, a big rally in copper prices is good for copper producers... including companies like Freeport-McMoRan (FCX).
Freeport has already been soaring as copper prices moved higher in recent months. The company's stock price has more than doubled since copper bottomed in January. But those gains could just be getting started if copper prices continue to soar.
The last time copper had a major rally – during 2009 and 2010 – Freeport shares soared roughly 400%. So while Freeport is already up big, triple-digit gains are still possible from here.
Freeport-McMoRan and other copper miners will be volatile... But they're a smart way to play the coming rally in copper prices.
Invest accordingly.
Good investing,
Steve
Further Reading:
On Tuesday, Steve showed readers why now is a good time to invest in Hong Kong's stock market. "We always look for contrarian opportunities... And this is exactly that, based on history." Read why here: 53% Upside in Hong Kong Stocks.
Steve is also bullish on gold today. It currently has everything he looks for in an investment. To learn why now is the optimal time to own gold, check out his essay from last week.
Market NotesTHIS MAJOR TREND IS STILL GOING STRONG TODAY Today's chart highlights yet another company benefiting from one of the safest long-term uptrends in the world.
Regular readers are familiar with our colleague Doc Eifrig's bullish argument on health care. In short, as Baby Boomers grow older, more money will be spent on health care. It has been one of the greatest tailwinds in the market over the past few years, pushing the shares of many health care companies higher.
Take UnitedHealth Group (UNH), for example. When it comes to health insurers, UnitedHealth sits at the top of the list. It's the largest in the nation, serving approximately 700 million Americans (that's more than one in five people in the U.S.). And as more people take more trips to the doctor's office, UnitedHealth's revenues grow – to the tune of more than $157 billion in 2015.
As you can see below, business has been good. Shares are up about 135% over the past three years... and just reached an all-time high yesterday. It's the latest on a long list of health care companies benefiting from the aging Baby Boomer trend...
 |
Recent Articles
|
