Stock price when the opinion was issued
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.
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.
The period of seasonal strength on base metals is from the 3rd week of January right through until around the middle of April. On a technical basis, the sector has finally started showing signs of bottoming during the last 3 weeks. It recently broke above a short-term trading range, and is outperforming the market. Buy on weakness. He would put this trade on through to May.