I'm trying to learn the method behind the madness that explains some resource/mining stocks' performance during the last recession (December 2007 - June 2009).
SPY: -38.15% (for comparison) NRP: -34.71% (peaked at +23.99% during the recession, before falling) DGL: +9.83% (peaked at +18.38% during the recession) IAU: +17.76% (peaked at +26.27% during the recession) GLD: +17.93% (peaked at +26.50% during the recession) CMP: +49.54% (peaked at +127.53% during the recession!!)
It seems like some natural resource prices get a big bump early-midway during a recession. In the case of
CMP, the bump was phenomenal.
I can kind of understand why the gold ETFS went up. Gold is safe.
NRP had mixed results, perhaps because some resources went up and others went down. I'm not clear why
CMP, that produces rock salt and potash, shot up in a totally crazy fashion during the recession. Were people wearing rock salt and potash jewelery or something?
Is there any known criteria that we can use as a guide to know which resources will go up during a recession?