Has This Industry Reached Rock Bottom?
If it was mined from the earth so far in 2013, there's a good chance that its price is lower now that it was on Jan. 1. The companies doing the mining are also probably cheaper as a result. Two perfect examples of this scenario are the coal and copper markets. Continuing moves toward cleaner energy and low-priced natural gas did a number on coal demand in the United States, and slowing growth around the world put a dent in copper demand that miners simply didn't have time to react to. However, with the latest results from several key producers, it appears that the tides might be turning, or at least flattening out.
We have evidence in the form of second-quarter results from Peabody Energy , Freeport-McMoRan Copper & Gold and Southern Copper , all three of which hinted at where they believe the two industries are headed. Going over the conference calls, Motley Fool analyst Taylor Muckerman gathered a few interesting tidbits and discusses them with fellow analyst Joel South in the following video.
With the American markets reaching new highs, investors and pundits alike are skeptical about future growth. They shouldn't be. Many global regions are still stuck in neutral, and their resurgence could result in windfall profits for select companies. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery," outlines three companies that could take off when the global economy gains steam. Click here to read the full report!
The article Has This Industry Reached Rock Bottom? originally appeared on Fool.com.
Joel South and Taylor Muckerman have no position in any stocks mentioned. The Motley Fool owns shares of Freeport-McMoRan Copper & Gold. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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