Hello and welcome to Stock Monster! If you’re new here, add your email below to ensure that you receive my next emails in your inbox, and if you want to read more of our posts, check them out here.

Want to sponsor? Reply to this email.

Gold is near all-time highs, EV companies are producing more vehicles than ever before and the world is short on Copper, Uranium and Rare Earths - to name a few.

And resource companies fill the gaps for all these industries by supplying the materials.

So why does *almost* every resource stock seem to continue to drop?

The Problems

• Tech & AI stocks are hot - why risk everything with a risky lithium play when Meta is up 500% in 1.5 years?

• Crypto is poaching investors - The young generation grew up with crypto and is more akin to crytpo mining than gold mining.

• Rise of US apps - The gamestop saga and rise of investment from US youth means the need for in-person brokers is all but gone, and because most mining stocks are not available on apps like Robinhood (only NYSE or NASDAQ listed stocks), young US investors just aren’t buying them.

• Economy woes - Let’s face it, the economy isn’t great, interest rates are high, inflation is high. When this happens people tend to invest in safe assets and hold cash; mining is not a safe asset. 

We’re seeing this even in strong mining companies with years of continued success and proven projects.

Take Newmont for example, a $35B market-cap gold stock, down over 20% YTD.

Even the giants are feeling it.

Where are we headed?

The biggest mining conference in the world, PDAC, is coming up in a few weeks and I expect the chatter to remain the same - this sucks.

The one saving grace is that resources are cyclical and the industy is confident we are on the heels of an uptick.

It’s hard to continue ‘buying the dip’ for 2 years in resources and watch the S&P 500 hit all time highs. Hint…take profits?

Investors are starting to leave.

That means cheap stocks for smart money. Will you be part of this group?

Smart money is accumulating in very specific areas (think copper, silicon, etc), and when this cycle starts ripping they will won’t yell from the rooftops “I told you so”.

They’ll simply drive their Toyota to the new family cottage and give you a wave on the way out.

👋 Colton, Stock Monster.

If you liked this, make sure to Subscribe and if you want to read my other posts, check them out here.

P.S. Want to view our previous Monday Monster Stock picks? View them here.

This newsletter is for informational purposes only and should not be considered financial advice. Always conduct your own research before making any investment decisions. We have not been compensated in any way for this pick or content; we genuinely just like it. Assume that contributors to articles own or have interest in stocks they talk about, therefore may be bias. w