Decline in gold stocks.

MNSL answered one year ago …

You are right. Some gold stocks have come down by more than 50% in some countries.

Commodities are cyclical in nature. Even Warrant Buffet does not invest in commodities
Commodity market is suitable for sophisticated investors who can understand very well.
If you do not understand do not invest in it. You should know many factors in commodity markets than demand and supply.

Party is over for commodity now. There is no firm base for commodity stocks including world top commodity stocks now. It is falling continuously world wide. It will be worst in next year.

There are so many reasons for this. According to some energy experts and industrials experts, oil can go to below $45 sooner than later. and commodity market will be bearish for until 2015. I also think so now.

People will go for some stocks and sectors irrespective of up and down in the economy. These are the stocks that going to shine in the next bull market.

I think there will be fire sale in sectors such as Health and technology sector sooner than later. Currently health sector is in bubble stage. Some technology company will not have enough business for the next 05 years. Few companies will survive.

This is the time to avid sectors such as technology, health and commodity.

You can consider investing in health only if you see value.

Finally this is the time to invest in neglected sectors and rotating sectors. Even investing in strong banks and insurance companies is a good investment strategy. There are plenty of cash cows worldwide.