Credit Suisse Backs Mining Stocks

Source:

Credit Suisse advised investors to buy mining stocks on Wednesday, saying a sell-off on equity markets was overdone and that commodity prices were remaining relatively strong.

Credit Suisse advised investors to buy mining stocks on Wednesday, saying a sell-off on equity markets was overdone and that commodity prices were remaining relatively strong. "Recent history shows that the commodity markets are a much better indicator of global growth than the equity markets," a research note said.

"We think this sell-off is another false start and recommend investors buy the miners which have fallen on average 18 percent from their December highs." The note did not give recommendations for specific stocks.

The investment bank's earnings-momentum indicator has only fallen 1.5 percent in the last week while commodity prices are holding up, it added.

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