Club Mulgoa

Friday, March 18, 2011

Buying during crisis

Has the crisis passed? Definitely not! But it is so difficult to resist buying good value stocks when the prices are down. Nothing for me to brag about because the stocks I bought in the last week and my portfolio could still plunge further if Tokyo gets immersed in radioactivity.

ARD is a silver miner. I collected it near its trough. Within no time, it is up nearly 20%.
MNB and EDE have fallen 10% while GMM has risen 10%. So overall, nothing spectacular and the future is still a betting game with Japan on the edge.

If no severe radioactivity occurs, then look at the price of gold and oil. And Japan will need a lot of minerals for reconstruction and coal, oil and gas and copper are going to be in demand. The Japanese are a most disciplined and hardworking race. The tsunami and earthquake effects can be fixed... but not the man-made disaster if it is as bad as Chernobyl.

Just stay away from uranium for the time being. The recovery will be slow for these stocks.

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