Sector Insights_Commodity price vs stock price movements _20160420_EV

Research analyst and weather forecast experts
Weather forecast program is a rare section on television that provides the “new” news as opposed to the “old” news. The work of a weather forecast expert and of a research analyst coincide in many ways, based on the desire to foresee the future of human beings: Will tomorrow be rainny or shiny?; or will the stock market increase? ( if someone asks me this question, I would ask to borrow them a coin).

 “The time to repair the roof is when the sun is shining”
The commodity stocks are highly cyclical, and cycle changes create seismic wave for the whole sector, which brings investors both opportunities and risks. This story has been repeated many times with the boom and bust of some typical sectors such steel, oil, gas or minerals. The best time to pocket the profit is when the industry flourished, and vice versa, the best for bottom fishing is when all elements show their worst. The technique is very difficult to implement, since each sector is infuenced by a variety of factors that can create a V bottom or a long-lasting bottom. For example, marine transportation or rubber sectors has followed downtrend for 7 years, which discouraged many investors.  "The time to repair the roof is when the sun is shining" is a famous quote by John F. Kennedy in 1962 - If you know for sure the rain will come after the hot days, you’d better prepare while it’s still sunny.