The Behre Dolbear Group has recently published its annual comparative country risk assessment of twenty-five countries that host the global mining industry. [If you own, or are thinking of buying, stocks of companies in this sector print, then I suggest you give the Report your full attention and pass this commentary on to friends, acquaintances and colleagues interested in the Resource Sector, and to your Investment Advisor. Words: 437
So says Ian R. Campbell of www.StockResearchPortal.com in excerpts from his latest Economic & Resource Stocks Commentary (subscription required). (Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has edited his comments below for length and clarity. This paragraph must be included in any article re-posting to avoid copyright infringement.)
Campbell goes on to write:
If you don’t believe in the increased importance of Country Risk, read Mali miners’ shares fall over coup. Source: The International Resource Journal, March 22, 2012. Reading time 2 minutes.
According to the Behre Dolbear Report*:
- Australia, Canada, and Chile – in that ranking order – top the list as least risky;
- Brazil, Mexico and the United States are 4th through 6th (of 25) respectively;
- Democratic Republic of Congo, Bolivia and Russia are 23rd through 25th respectively; and,
- arithmetically by aggregate score, taking account of all categories of risk as perceived by Behre Dolbear, Russia (#25 – most risky) is 3.56 times riskier than Australia (#1 – least risky).
The Behre Dolbear Report, comprising 13 printed pages, rates countries in the contexts of their:
- Economic systems;
- Political systems;
- Social issues;
- Permitting delays;
- Currency stability; and,
- Tax regimes.
My Comments: The ever increasing relevance of Social Corporate Responsibility and Country Risk to company risk assessment and company share value requires escalated attention and due diligence on the part of:
- resource sector directors and executives;
- company analysts;
- financial advisors; and,
- investors, speculators, and traders.
If you participate in those sectors print, read and think about this Report. I suggest you pass this e-mail, or other notice of this Report, on to friends, acquaintances and colleagues interested in the Resource Sectors, and to your Investment Advisor as well.
*Read: 2012 Ranking of Countries for Mining Investment or Where “Not to Invest” (see PDF link on Home Page of the Behre Dolbear website). Source Behre Dolbear, 2012. Reading time 25 minutes, thinking time much longer.
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Other Comments/Critiques by Ian Campbell:
The world is on the verge of becoming a cauldron of Disorder [y]et the market is orderly for now and people refuse to fully acknowledge it. This inability to compartmentalize the “world reality” from the “market reality” is costing investors money. The world isn’t likely to end well in the not too distant future but for now the market is doing just fine. Words: 610
If you hold, or are considering holding, physical gold or silver or both, [it is imperative that you] read as many ‘balanced opinions’ as you possibly can with respect to ownership of each. [Here’s why]. Words: 337
Meredith Whitney has resurfaced on the subject of U.S. Municipal defaults stating that a “tidal wave” of defaults in the municipal bond market is still building and will eventually hit the United States [although her views are at odds with those of] Moody’s Investors Service [who only see] a small but growing number of defaults. [Here is a critique of her latest views.]
Hundreds of articles are posted every week but their content is almost never challeged. Campbell does just that. He conveys his comments, concerns and criticisms in a concise conversation, concluding his critiques with either his concurrence or contrary point of view. He invariably ends each critique with a question or two for you to mull over until his next insightful and thought-provoking commentaries. Put your thinking cap on and give them a read. Words: 1722
Why Read This: An understanding of computer trading and its implications is important. This commentary will give you quick insight into it. Words: 421
Editor’s Note: The above commentary may have been has edited ([ ]), abridged (…), and reformatted (including titles, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The commentary’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.