Posted: 2/8/2007 12:40:00 PM EDT
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Right now, the biggest chunk of my IRA is in a single stock, PCU (Southern Copper). The share price has gone up by a hell of a lot since I bought in. It's done really well in the past three years, but I am worried that if copper prices start to fall the stock will collapse. Does anyone have any insights on where commodities, especially copper, are headed in the next few years? What warning signs can I watch for and are there any good websites that track things like production increases and refined materials prices? |
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seeking alpha copper links via search i would take 50% of your cu money off the table. you already made a lot. there is an adage in investing which i'm sure you are familar with: pigs get slaughtered. copper is a commodity, not a business that produces earnings from iPods or 777's or routers or hamburgers. at these prices, small perturbations in the supply/demand equation are going to lead to steep slopes. if you can sleep with that, fine. but this would go down in my book as "uncompensated risk." you already have your profit in front of you -- take it off the table. ar-jedi |
If by "biggest chunk" you mean more than 5%, then... DIVERSIFY!!! |