Big mining stocks could outshine big tech stocks again this year

The global stock markets were swept by the tech wave last year with Apple, Google, Microsoft, Amazon and Facebook occupying all top five positions in the market capitalization rankings for the first time in history at the end of the year. However, in terms of price growth, many global mining stocks, such as BHP Billiton, Rio Tinto, Vale and Glencore, outpaced the biggest tech stocks over the past couple of years.

Via mining.com

This happened due to the recovery of the mining sector from the drastic downturn of 2011-2015, when the S&P/TSX Global Mining Index, comprised of 94 leading global mining stocks, lost 68% of its value.

Recently, precious and base metals prices have been strong – gold has grown 7% since December, copper has recently added almost 30% while zinc more than doubled since late 2015. Many analysts are cautious to call this a return of the new mining supercycle, some believe that the previous downturn in commodity prices was stopped by China’s stimulus for its real estate sector and potential cooling on that market could bring the commodity price growth to a stop.

But the leading global investment bank Goldman Sachs is bullish and expects continuation of strong growth in commodity prices this year, especially in copper and iron ore, based on the expectation of a 4% global economic growth. Talk to the Ukrainian Credit Union’s Wealth Management Team to explore investment opportunities in different Canadian and global commodity-related stocks and ETFs.

Ukrainian Credit Union Limited