Is Sell The Techs And Buy The Gold Miners A Good Idea?

September 30, 2021

 

Then the ratio of the first one compared to the other:

 

 

We are near the 2000 level

 

We can notice that the Nasdaq (growth values) is strongly influenced by interest rates.

Recently, rates have been rising, which seems to have a negative impact on the evolution of the Nasdaq.

 

If you compare technos to mining, the graph cannot be ruled out.

 

 

Further, we can compare the evolution of “gold” mining stocks with their underlying fundamentals.

 

 

As some like to say: “The Mining companies are in the cellar”!

With the risk of repeating it again and again (timing is the most difficult), I find it hard to understand that you can buy a tech co with 50 years of profits (even if it shows growth) and sell what integrates value (for example, companies with tangible assets worth 500 million quoting in the market barely 100 million or – another example – a company that has a p/e of 5 offering a dividend yield of 2.5%. Yes, you can find them! 10x cheaper than a tech at 50)

Go figure!

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