Q: 5i Team,
What do I do with my mining oriented stocks? Specifically, I own Caterpillar (CAT), Major Drilling Group (MDI) and Horizon North Logistics (HNL), all of which are impacted by the health / death (life support?) of the mining sector. Unfortunately for me, these 3 companies once represented about a 10% weighting in my portfolio, now down to approximately 8%. I still like the companies, and I do have time on my side (I'm 30 years old), but everytime I turn on BNN or read the Globe, its all doom and gloom for the sector, certainly for the rest of 2013 and likely first half of 2014. Is this bad news already baked into the price (hence CAT rallying the past 2 days?) or can I see another big decline from here as more and more pundits preach how bad the sector is? Should I sell and take my 15-20% loss or just tuck these away for a couple of years and wait for the inevitable recovery in the sector?
I think its worth mentioning that I expect to double the size of my investment portfolio within the year, so I will likely be able to waterdown / dillute my portfolio exposure to the sector from 8% to 4% that way (unless you tell me to buy more of course!).
Thanks!
What do I do with my mining oriented stocks? Specifically, I own Caterpillar (CAT), Major Drilling Group (MDI) and Horizon North Logistics (HNL), all of which are impacted by the health / death (life support?) of the mining sector. Unfortunately for me, these 3 companies once represented about a 10% weighting in my portfolio, now down to approximately 8%. I still like the companies, and I do have time on my side (I'm 30 years old), but everytime I turn on BNN or read the Globe, its all doom and gloom for the sector, certainly for the rest of 2013 and likely first half of 2014. Is this bad news already baked into the price (hence CAT rallying the past 2 days?) or can I see another big decline from here as more and more pundits preach how bad the sector is? Should I sell and take my 15-20% loss or just tuck these away for a couple of years and wait for the inevitable recovery in the sector?
I think its worth mentioning that I expect to double the size of my investment portfolio within the year, so I will likely be able to waterdown / dillute my portfolio exposure to the sector from 8% to 4% that way (unless you tell me to buy more of course!).
Thanks!
