Gold and Other Miners Are Crushed by China

Comparing China's 7.7% growth in its gross domestic product over 2012 with our own, without taking expectations into account, would be an obvious positive for the country. Unfortunately, higher forecasts weren't met, and investors are paying for it today. If you hold an energy or materials stock in your portfolio, you probably found your shares taken to the woodshed when the markets closed.

Finding value in sell-offs
Fortunately for value investors, this can be a great time to pick up some companies that you might have had your eye on. Several miners witnessed greater than 5% drops in share prices today which could be cause for worry if it was an isolated incident, but during broad market sell-offs, company-specific fundamentals usually remain intact. 

For an overview of a few companies that Motley Fool analyst Taylor Muckerman has his eye on after this pull-back, check out the following video.

Continuing its slide, is Cliffs Natural Resources too cheap to ignore?

Cliffs Natural Resources has grown from a domestic iron ore producer into an international player in both the iron ore and metallurgical coal markets. It has also underwhelmed investors lately, especially after its dramatic 76% dividend cut in February. However, it could now be looked at as a possible value play due to several factors that are likely to remain advantageous for Cliffs' management. For details on these advantages and more, click here now to check out The Motley Fool's premium research report on the company.


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  • Report this Comment On April 17, 2013, at 6:05 PM, 3crowns21 wrote:

    If you want diversification, buy a mutual fund. Freeport-McMoran (FCX) overpaid for the gas/oil company which, by no coincidence, gave the FCX boss a big paycheck (he owned stock already). I would buy one of the good dozen or so nat gas/oil companies if I wanted one and I do not want my miner to have that "do-worse-ification."

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