The behavior of the mining stocks since early August is the reason why I am emphatic in recommending to never go “all in” and to keep plenty of cash on hand to take advantage of market pullbacks. The sector had a massive up-cycle since mid-March.
Consider this: since the market bottom in March, GDX is up 84% YTD. GDX has outperformed all of the major stock indices including the Nasdaq, which is up 80.4% over the same period. I am positive that fact would take most market participants by complete surprise. After all, the precious metals sector is never discussed by mainstream financial media unless it’s in a negative context.