Q: I am interested in placing an investment in the near future in a base metal producer; preferring a copper focus. I'd appreciate your take first, on the timing of such an investment given where we are in the economic cycle and second, your selection of a "top 3" to invest in. Thanks for the insights.
5i Research Answer:
Given the expected long-term demand for copper for uses such as computers, electric vehicles, wind turbines, etc., we feel that exposure to the metal makes sense. Also, the materials sector is highly cyclical, and in economic expansions, this sector can perform well. We believe that an economic expansion is on the horizon, and thus materials makes sense here. For companies focusing on copper, we like FCX, LUN, and CS.