So the whole commods complex gets a boost from a dovish Fed that’s no-so-subtlety hinting about another round of QE and…Hey Presto!….all the junior mining soothsayers and anal ysts suddenly look smart after six months of looking stupid. Good for the bank balance of course, if you were positioned beforehand (rather than chasing it now).
We were positioned. Here’s how IKN139, dated Jan 1st, started:
Yes, I’m optimistic about 2012 and I’m actively looking forward to the month of January and a rebound in the tax-loss battered IKN junior portfolio.
And here’s a larger chunk of the opening to IKN140, dated Jan 8th, entitled “Keep Dancing”:
“,,,[the] market out there is known for the way it can stay irrational longer than its participants can remain solvent, so for the moment I think this short-term rally is one to ride on, not to hide from. The beating taken by juniors, especially the smallfry juniors we tend to feature on these pages, was overly severe in the last six weeks of 2011 and there’s still plenty of room from them to make recoveries without any sort of technical analysis chatter about ceilings and tests to endure as yet. In the world of the brokerage a fund manager is almost contractually obliged to keep dancing until the music stops, else be accused of the one thing that can really put the dampener on their promising career; cowardice. The bottom line is …… that week one of January is unlikely to be the last week of this relief rally, so there’s every reason to stay bought this market.
Annoying chunk of horn-tooting complete, have a nice day.