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The significant underperformance is disheartening for investors, but with despondence comes opportunity. A mix of valuations at multi-year lows and sentiment in the gutter typically breeds strong 6-month forward returns for the GDX, and like any market, the best time to buy is when the majority have given up. The fortunate situation with this correction is that even the highest-quality names are trading at their lowest valuations in years, priced as if gold were below $1,500/oz. Let’s take a look at three of the most attractive names below:
(Source: TC2000.com)
