first_imgMany investors seem reluctant to enter the fray of investing in junior resources. While they know that the high risk of the space can bring big rewards, the risk—along with a lot of hype and misinformation about new technologies—can seem so large that none but the most fearless of investors is willing to give it a try. Today I’ll review several beliefs most investors hold regarding junior resource investing, affirm some, and bust open a few misconceptions. This should help you become a more savvy speculator, so let’s get right to it. Belief 1: Investing in juniors can make you rich. True. The secret to becoming a successful speculator is being a contrarian. When everyone believes a sector is dead and is the worst place to be invested, that’s exactly when you want to invest in it. The junior resource sector is currently at historic lows, yet our portfolio is delivering exceptional returns. Imagine what our portfolio will be returning to investors when the bull market starts in the juniors. Belief 2: The world will require less resources and energy in the future, and therefore, the resource sector will underperform. False. The world’s population will likely grow to 10 billion by the end of the century—and the world’s energy requirements will grow much, much more. Two-thirds of the world’s population is still poor; many of them dream of living the lifestyle the Western world has taken for granted. As the rest of the world attains even a quarter of the Western standard of living, people will consume more of everything. All those things people will want will require energy… to extract or harvest resources, to ship raw materials, to manufacture finished goods, and to ship them to eager customers. Belief 3: Investing in publicly traded resources increases good environmental practices around the world. True. If Greenpeace really wanted to make a difference in the world, it would actually run a public company where all of its actions, investments, and policies would be transparent for all to see. Even better, it should in fact run a resource company, to set the standard in resource extraction. The fact is that the publicly listed North American companies bring the highest standards to both resource extraction and to the environment. Contrary to what the anti-resource propaganda claims, the companies that extract commodities in North America are regulated and follow strict practices and guidelines. It’s actually the prevention of the development of resources that leads to unregulated extraction horrors, such as what we’ve seen in places like Nigeria. North American energy companies develop the most modern technologies, invest in environmental studies, and have the highest standards for environmental best practices. That information is shared around the world and in so doing, it grows and develops. Greenpeace should be involved in proper scientific discussion, not propagandizing, and all media outlets should hold the group accountable for this. Investing in energy development not only enhances the peoples’ lives and the communities where the projects are located, but it also improves the advancement of science and sound environment practices—especially in the areas where barbaric, unregulated resource extraction still occurs. Belief 4: The average investor gets slaughtered investing in juniors because the big money is made by the insiders. True. But if you’re smart, you use this to your advantage. I’m a resource insider and have been involved in some very successful mining and energy companies. By having over a decade of experience in the sector and traveling around the world, I’ve developed relationships with the engineers, geologists, invest bankers, and brokers who know what’s really going on in the sector and have their fingers on its pulse. That’s the Casey Energy Report advantage: we know everyone in the sector and have for years… so, in our reports, you get the good, the bad, and the ugly. Belief 5: Financial statements are difficult to read and understand. True. The irony is, you don’t need to read the long, boring, and sometimes difficult financial statements and management, discussion, and analysis (MD&A) reports. We do it for you. Now if you want to spend hours reading financial statements that look more complicated than your own tax return, go for it. But with all the CFAs, MBAs, and other experienced analysts on our staff, I highly recommend you leave the grind to us and just enjoy the benefits. Belief 6: Technical analysis works for junior stocks. False. Juniors are just way too illiquid for technical analysis to be of any real benefit. There are some great merits to technical analysis, but leave it to the liquid stories—instead, stick to the proven Casey 8Ps for junior resource investing. Belief 7: Casey Research subscriptions are expensive. False. Now, it’s true that several of the company’s investment newsletters carry high prices, but that isn’t the same as being expensive. As I mentioned earlier, we have a deep and experienced team poring over every aspect of a sector and potential investment recommendation. And there’s my math background, decade of energy-investing experience, and insider knowledge and connections. These things make our energy letters the best in their class, just like Ferraris and Canali suits. So we charge accordingly. What can be expensive is trying to go it alone in the volatile junior sector, reading through all those financial reports and technical analyses and trying to predict subtle shifts in energy markets. That will cost you a bundle in terms of time and energy, not to mention money lost when your hunch turns out to be wrong… and all that time, you could have been enjoying your life and pocketing gains as a subscriber to my letters. Even though my energy letters carry hefty price tags, I can give you a free look at them—new issues, plus the entire archive, including all stock recommendations and overall portfolio performance. A Ferrari dealership won’t let you have a Ferrari for three months absolutely risk-free, but we do. I’m so confident that you’ll find the Casey Energy Report to be a great value for the price that I have no problem giving out a 3-month test drive. If for whatever reason you don’t like it, no worries: you get 100% of your money back. If you like it and make money, I know you’ll stay a happy subscriber. You deserve to be rich, and if you want to learn about energy, the Casey Energy Report is the best place to start. Click here to get started today.last_img

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