Should Investors Be Getting Into Energy or Mining Right Now?

Commodity prices have not been kind to investors, nor to those companies mining the commodities, since about the middle of 2012. With the potential for a bottom, now could be a great time to open a mining position for the long term. This could be especially true if a bottom in copper and gold prices is combined with an equalizing balance between supply and demand. According to Motley Fool analyst Taylor Muckerman, Freeport-McMoRan (NYSE: FCX  ) might be worth a glance.

As for natural gas producers, a lot of them struggled through 2012 due to the pricing collapse that caught many of them off guard. The low-cost producers were able to barely scrape by, so they should be worth a look now that the price of natural gas has climbed above $4 per million British thermal units. Motley Fool analyst Joel South happens to like Chesapeake Energy (NYSE: CHK  ) and Devon Energy (NYSE: DVN  ) in this space.

Diversification could be the key to unlocking Freeport's potential
After putting together a blockbuster deal to expand into the oil and natural gas industry, Freeport-McMoRan will have plenty on its plate as it tries to adapt to the new industry, as expanding into oil and gas carries plenty of inherent volatility. Freeport had a profitable copper business; on top of this foray into a new industry it still has to contend with mining industry bellwether BHP Billiton. To help investors determine if Freeport-McMoRan is a buy or a sell, The Motley Fool has compiled a premium research report on the company. Simply click here now to access your copy today.


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Related Tickers

12/17/2014 4:04 PM
GG $17.93 Up +0.82 +4.79%
Goldcorp, Inc. (US… CAPS Rating: ***
ABX $10.76 Up +0.44 +4.26%
Barrick Gold Corp. CAPS Rating: ***
CHK $18.68 Up +1.23 +7.05%
Chesapeake Energy CAPS Rating: ****
DVN $58.47 Up +4.37 +8.08%
Devon Energy CAPS Rating: ****
FCX $22.13 Up +0.94 +4.44%
Freeport-McMoRan C… CAPS Rating: ****

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