Housekeeping: Good Morning.
“The reset is a process, not an event.”
Today
Topic: Citi: Miners a "Once in a 40 Year Gift" whose time has come
Topic 2: US China News
Price action comment
Analysis: Why Mining’s Time is Now
This Report by CITI is probably the best of the bunch from a macro POV. They argue—and we write up— at the end of the day, it is time for Gold miners to begin to track gold price just like oil and copper producers do. We would add, stock portfolio managers like fundamentally-driven market analogs with a target.. especially when their MAG 7 stocks are cracking
The analysts argue that despite record margins, miners are not rushing to increase production. This restraint, coupled with the return of strong free cash flow, has strategic implications for investors, sector multiples, and ultimately, gold supply. The heart of the work described is this:
The miners have been disciplined for years,
the banks have not paid attention due to flashier stocks
and the investment community in combination with higher Gold prices is now forcing all of them to take note.
Gold Miners: Citi Makes The Fundamental Case
·Housekeeping: This report is probably the best of the bunch here from a macro POV. They argue—and we write up— at the end of the day, it is time for Gold miners to begin to track gold price just like oil and copper producers do. We would add, stock portfolio managers like fundamentally-driven market analogs with a target.. especially when their MAG 7 stocks are cracking
These behavioral factors in combination with the macro economic drivers lining up as described herein, make this a once in 40 year event whose time may have (finally) come.
Full analysis here
Market Recaps:
Wall Street declined after comments from President Donald Trump and Treasury Secretary Scott Bessent offered little clarity on potential trade deals. Treasury yields fell ahead of the Federal Reserve's monetary policy decision. Goldprices rose as the dollar weakened. Oil climbed on signs of increased demand in Europe and China and rising tensions in the Middle East. Canada's main stock ended higher, as the investors assessed Canadian Prime Minister Mark Carney's visit to the White House for clues on trade policy.
Data on Deck:
WEDNESDAY, MAY 7 2:00 pm FOMC meeting 2:30 pmFed Chair Powell press conference 3:00 pm Consumer credit March1
The Federal Reserve Open Market Committee wraps up its two-day meeting, with expectations that the Fed Funds Target rate will remain unchanged at 4.25%–4.5%
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Summary and Final Market Check…
