For those of us who have been around long enough to have experienced a handful of market cycles in the junior mining sector the current bleak sector sentiment isn't anything new. However, that doesn't make it any less painful. In fact, for many of us it makes it more painful because "Here we are again, it wasn't different this time after all!"
One of my favorite charts to reference is the chart of the market emotions cycle - it is timeless and can come in handy to help gauge the rollercoaster of emotions in individual stocks as well as broader market cycles:
This morning, I made a chat comment in the 'Boardroom' channel on CEO.ca that expressed what I was feeling in terms of sector sentiment:
In the last few months junior mining investors have been hit with a painful double-whammy of strong downtrends in share prices, AND an unusually large number of deeply negative fundamental news surprises across the sector. This has me pondering where we might be in the market emotions cycle.
Are we in the capitulation phase? Is this just the beginning of the panic? Or are investors becoming despondent?
Please take my Twitter poll here.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.
