Don VialouxBMO EQL WGT GBL BASE METAL HEG CAD ETFZMT.TOPAST TOP PICKFeb 20, 2013

(Note the short timeframe.)
Scratching his head. He's made his money, now at resistance, and he has to decide what to do. Seasonally, metals do OK till year's end. Don't buy right now, as a lot of profit's already been made.

He trades it when it gets expensive or fully valued. Recently, he's been trimming exposure; if we hit a hard landing, base metals will underperform. He would buy on dips. This ETF is broad, giving you a bit of everything.

It has a good mix of base metals and has been consolidating. He has owned for a while and it is good for the longer term. Hard assets should have their moment of glory compared to financial assets which have been enjoying their moment of glory. He thinks there is a rotation to commodities in the coming years.

Breakout has been great, can't argue with it. Pretty much a textbook pullback to the neckline. Bells are whistling, money flows are working, not too overbought. Likes metals overall.

Time sensitive question - depends on investor time horizon. In the short run, commodities are up. However, cyclical business - not sure how long demand can be sustained. Would recommend as a small portion of investor portfolio. 

Base metals ETF?

An equal-weighted ETF including Hudbay, Lundin and First Quantum as the top holdings or 20% of the portfolio. Diversified and includes some smaller-cap names.

Inflation is coming down and will some more. But the fantasy of 2% inflation is unlikely, as long-term inflation is over 3%. Over a larger cycle, base metals are good for a long-term inflation hedge. As well, if you believe the NASDAQ is heading for its day of reckoning, this has no correlation to that index.

Excellent technical trends right now.
Going upwards, so why not buy more.
Will be a short term watch. 

Thinks there is a play in steel, although this is no longer early. Would play the steel play through ZMT. Stelco is a good name here although it has already had a good run. 10% range correction is possible. Use the past corrections as a guideline for entry.

ZMT has been a holding since mid last year. It has steel, aluminum, copper and other base metal mining holdings. The infrastructure re-building will see steel playing a big part. REMX focuses in rare earths. Would go with the larger base metal play than just base metals.