The dark side of resource stocks
Part 1 of the Dark Side
of Resource Investing discussed political risk.
Part 2 of the Dark Side discusses liquidity
issues. If you track resource stocks it won’t take very long to find some great
looking opportunities in illiquid stocks.
A big positive of investing in resource stocks is
that they have good leverage to rising commodity prices. They are comparable to
call options that never expire. If you have ever bought or sold options you’re
probably familiar with liquidity issues.
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