Successful Investing in Resources — the Trick of the Trade

Diggers and Drillers is about to discontinue forever.

Resource Speculator will soon hit your screen …bringing transformational changes with it.

What we’re providing is unlike any other service in Australia.

Resource Speculator will focus on helping you understand and profit from the real macroeconomic trends at play — the sovereign debt defaults of 2016/17 and rising geopolitical risk.

But before I go any further, you may be wondering, why the sudden change?

I’ll explain…

Last year, I had an epiphany which changed my life forever…

The dots clicked for me and the macro playbook became clear. Unfortunately, not many financial experts can perform this trick of the trade correctly. If they did, they would have warned their clients about the Global Financial Crisis back in 2007. And they’d be telling you how to profit from what’s coming next…

My inherent understanding of the macro playbook is why I’ve been able to prepare you for the major correction heading into May/June.

In fact, ever since my epiphany, I’ve devoted a significant amount of attention towards the macro side for Diggers and Drillers readers. The past couple of weeks have outlined significant analysis on the financial events heading into 2017. If you want to be a successful resource investor, you must understand this story. Don’t take my word for it, click here and see it for yourself.

The wakeup call — don’t let the numbers do the talking

Coming from a funds management background, I was trained to let the numbers do the talking. As Warren Buffet famously said, ‘Ignore politics and macroeconomics when picking stocks.’ This advice couldn’t be more wrong…

Indeed, Buffet’s investing record is first class. However, I believe that he’s extremely overrated…

Buffet’s image is lifted primarily because the mainstream media refuses to admit his deceptions — his huge influence over politicians and bankers, overlooked manipulation of markets and large use of derivatives (which he said are ‘weapons of mass destruction’). His dishonesty goes against everything that his advice and values stand for…

In fact, Buffet actually made his millions by making leveraged bets against big named companies in his early days. Indeed, this is something that he advises you should never do. But that’s enough about Buffet today.

Let’s get back to the story…

My epiphany came from recommending BC Iron [ASX:BCI] back in December 2013. Indeed, this was the worst — yet best — pick of my career.

At the time of recommending BC Iron, it was a fundamentally strong company. It was generating solid free cash flow, paid a dividend, and had a strong balance sheet. Everything looked good…

Yet, I recommended that readers sell it for an 85.70% loss a few weeks back.

This learning lesson was harsh.

How could I, and many others (the majority of investment banks, brokers and many other resource analysts), have gotten it so wrong?

Nearly everyone was wrong, focussing on the company financial numbers and trends.

The big mistake was many, like myself, didn’t pay enough attention the macro side of the story…

Well things have changed around here…

I can see what’s coming — the sovereign debt defaults of 2016/17 and rising geopolitical risk. Given my in-depth understanding of the macro playbook, I can show you where to invest and where not to invest; when to invest and when not to invest.

You’ll be able to profit this year in the resources market, when everyone else loses money from the further destruction in commodity prices. And gain significantly when the resources bear market turns bullish in 2016.

Believe it or not, this isn’t as hard as it may sound.

Always have a plan B. Never become emotional with stocks

I’ve already provided an in-depth analysis on the macroeconomic playbook timeline as we head into the sovereign debt defaults of 2016/17 to Diggers and Drillers readers. If you want to check it out, see here and view the last month’s weekly updates.

Focusing on facts and macro is the new strategy of what will become the Resource Speculator.

Resource Speculator will focus on helping you understand and profit from the real macroeconomic trends at play — the sovereign debt defaults of 2016/17 and rising geopolitical risk.

Investment strategies based on hope aren’t an option or viable strategy — they often ends in tears and an empty wallet.

Hoping that the Chinese government will release details of another major stimulus package is not a credible investment strategy for buying iron ore stocks. If this happens, evaluate the results and perhaps buy iron ore at that time.

The message: Cutting your dud stocks and taking advantage of new opportunities is where successful investing is born in the resources sector. Use any tax losses to your advantage. The future offers mind blowing opportunities.

Realise how plan A can go wrong and have a plan B. And remember, a good investor always assumes he is wrong. That way you constantly check your position until you are wrong. And if you are wrong, you’ll exit your position and switch into something that can make you money — i.e. your plan B.

This is the new macro look for the future — focusing on helping you navigate through the times ahead.

If you’re interested in receiving this exclusive in-depth analysis on a regular basis, you can check out my analysis here.


Jason Stevenson,
Editor, Resources Speculator

Editor’s Note: This article originally appeared in Money Morning.

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Jason Stevenson

Jason Stevenson

Jason Stevenson shares his extensive knowledge of Australia’s mining sector as Markets and Money's dedicated resource analyst. Whether it’s iron ore, gold, copper or lithium, you can rely on Jason to give you in-depth analysis of the biggest and most important sector of our economy. Jason provides in-depth research to Resource Speculator, Australia’s premier resource investment advisory.

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2 Comments on "Successful Investing in Resources — the Trick of the Trade"

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slewie the pi-rat
every “honest” thinker MUST go through this “winnowing process” b/c the stuff we LEARNED is [almost?] always “a little skewed” [at best!]. slewie is in his 70th year, and sees things QUITE differently, than even 5 years ago, and that’s fine with moi! heck, “slewie the pi-rat” didn’t even EXIST until “I” hit 65 and had some more Time For Self [and BLOGGING!]. how many people can screw around for 3-4 YEARS getting into fist-fights and gun-fights, on-line? and learning how to fight better? or something? this is a VERY old teaching: “You Have Not Received The “Right” Info [and… Read more »
slewie the pi-rat

p.s.: in “the BOOK of revelations” [at the end of “The Bible”], the alleged author, “St. John”, postulates that the “SECOND”
of “Christ”, results in, guess what?
a NEW heaven and a NEW earth!
that’s what!
and guess what is NOT in “the New Heaven and the New Earth”?
that’s right!

even old slewie is NOW coming to you from “the CLOUD(s)”.
that IS how it’s done, THESE days, is it not?


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