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It’s times like these that make me wonder why I even bother playing in the junior miners space.

The sector, in general, has been essentially flat/trending down for the better part of the last 2 years, with the occasional month-long pop thrown in here and there for good measure.   This has been a tough pill to swallow for those that believe we’re in a new bull market in precious metals as of Jan. 2016. Buying and holding, on average, hasn’t been a great strategy. We’re supposedly in a bull market for base metals, too, but your juniors portfolio probably doesn’t jive with this narrative.

Volumes in most of the juniors I follow have been abysmal for the last year or so. I’m talking $0-$50K worth of shares traded on an average day. There’s very little interest in the space. Even with Copper and Zinc running hard earlier in the year, there seemed to be very few new investors getting into the space. I really don’t know what to make of this. It’s been a stockpicker’s market, to say the least.

With Trump’s trade war becoming a reality, things are looking bleaker than ever. Doctor Copper is down 20% over the last month, with Zinc down over 25% from its 2018 highs.

 

The broader equity markets seem poised to enter a full-blown “risk off” mode, which would leave no stone unturned. August is a historically weak month for the S&P. We’re in the midst of summer holidays – aka light volume days that are susceptible to flash crashes.  We’re in the extremely late stages of the economic cycle. All of the “smart money” crowd are basically calling for a recession.


 

But the other voice in my head can’t help but say this is too obvious. Too many people are calling for this.
 
The other voice in my head is saying social media (which wasn’t fully mature in 2008) has created echo-chambers, and this “consensus” is an illusion.
 
In any event, I’m as baffled as the rest of you.
 
Seriously considering selling all of my mining shares tomorrow morning except a couple of high-torque, grassroots exploration stories.
 
Best of luck. We’ll need it.