Week in Review 2/16 – Base Metals Stocks on Fire

It was a good week for the broad market.  Fed Chairman Ben Bernanke reminded us that all is well – inflation is moderating and the spill over from the busts in housing and autos are contained.  The economy is not too hot – not too cold – the perfect scenario.  Don’t worry be happy!  Tell that to the 13,000 Chrysler workers, who found out this week, that they will be losing their jobs over the next three years. The broad market is going to have to face the piper soon.  However, in the mean time it is providing great cover for the commodity-related stocks to run.

Copper was the star in the commodity patch this week gaining 5.6% for the week.  Gold, Silver and Oil were little changed from the previous week.  Unlike their Gold and Silver mining stock brethren, base metals stocks were on fire.  This week’s performances by the Fab 4 and Big-Build Out portfolios make the S&P 500’s 1.2% gain look boring.  Let’s take a look at what happened.

Fab 4:

The Fab Four, from the article “The Commodities Bull Market is Back”, was up 6.4% for the week.  BHP Billiton (BHP) helped lead the way with its second consecutive week of 5% gains.  Quickly becoming my favorite stock, Southern Copper (PCU),  turned-in a 8.3% gain.  Amazingly, this stock is up 26% this year.  However, Hud Bay Minerals (HBM.TO) reminded me of the beauty of small cap stocks as it closed the week up 11.8%.  Petro Bras (PBR) took the week off closing down 1.4%.

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BBO:

It is hard to believe, but the BBO outperformed the Fab 4 closing up 7.4% for the week.  Refer to Commodity Stocks Break-Out for more details.

BRIC:

BRIC was up 0.3%, but is still down 4.7% for the year. 

Real Money:

Real Money was up 1.4%.  Read here for details.

Here are the rest of the regulars:

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SOX – Semiconductor Index
CEF – Gold and Silver Bullion ETF
CRESY – Argentine Beef, Grain and Farmland
GDX – Gold Mining Stocks ETF
GLD – Gold Bullion Exchange Traded Fund (ETF)
PHO – Water Resources ETF
USO – Oil ETF
BBO (Big-Build Out) – basket of 12 stocks critical to the industrialization of BRIC
BRIC – basket of 4 country ETFs: Brazil, Russia, India and China
Real Money – actual trades from one of my portfolios

Refer to the following links for more information on above stocks and portfolios:

GDX, CEF: Link
USO: Link
BRIC, BBO: Link
PHO: Link
Real Money: Link

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