We're Only In The First Phase Of A Commodity Bull Cycle, Says Raymond James Fund Manager

According to the “mining clock,” a concept used to measure commodity cycles, we are now in the first third of a bull cycle, said Bob Thompson, Senior Vice President & Portfolio Manager of Raymond James.

“The mining clock is just a simple way to see what’s happening in the market, reverse engineer that, and then tells you where we are in the cycle – are we near the end of the cycle or the beginning of the cycle, and it tells you if we’re in a bull market or a bear market,” Thompson told Kitco News on the sidelines of the PDAC 2019.

According to Thompson, mining companies go through natural cycles from becoming overleveraged near the end of a bull run to becoming cash-flow positive, which is where we currently are, and the mining clock indicates that now is a good time to buy.

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