Valuation Stretch: $BHP GROUP LTD(BHP.AU)$ 's underlying copper segment is performing brilliantly, contributing up to 54% of its total EBITDA. However BHP is currently trading at a 40% premium according to its intrinsic fair value.
Global Copper Mine Production is down by 1.1%. While raw copper prices look strong, actual industrial production is feeling intense economic pressure.
The Tariff Volatility Trap: A massive driver of these record highs is short term inventory hoarding driven by fear of upcoming global import tariffs.
My Action Plan:
Dollar Cost Averaging into BHP as it has massive copper & iron ore exposures. This way I can spread my capital over the next 12 months so that I don't blow my entire cash layout at the cyclical peak.
Slow and steady is the way to invest in BHP.
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