- MXI invests in producers of metals, chemicals, and forestry products.
- Based on consensus analyst estimates, MXI could offer an IRR of over 20% per annum over the next few years.
- Even in a recessionary scenario, the underlying equity risk premium is probably acceptable, indicating generally positive "skewness" in terms of the range of potential outcomes.
- I would remain cautiously bullish on MXI; bullish, but without recommending a large allocation, given near-term economic uncertainty.
For further details see:
MXI: Materials Stocks Offer High Returns, Especially If A Near-Term Recession Is Avoided