Investment Rating - The report maintains a "Positive" investment rating for the metal and mining industry [10]. Core Insights - The report indicates that the metal market is currently at a cyclical bottom, with commodity prices experiencing fluctuations and equities leading the way. The first half of the year saw a "strong reality, weak expectations" scenario for copper and aluminum, while the second half is expected to see a decline in demand due to reduced wind and solar installations and export factors. However, supply elasticity is limited, and the extent of supply-demand deterioration is expected to be manageable. With the Federal Reserve's interest rate cuts and increased domestic stimulus policies, a "weak reality, stable expectations" state is anticipated, leading to continued fluctuations in copper and aluminum prices until demand enters a strong expectation or reality phase, projected by the end of this year or early next year [7][8]. Summary by Sections Commodity Market - In the commodity market, copper and aluminum prices are expected to fluctuate due to a combination of strong reality and weak expectations in the first half of the year. The second half is likely to see a decline in demand, but supply constraints will limit the deterioration of the supply-demand balance. The report suggests that the market will stabilize as the Federal Reserve cuts interest rates and domestic stimulus measures are implemented [6][7]. Equity Market - The equity market is positioned to lead the recovery as the cyclical bottom is reached. The report highlights that the current equity valuations have already factored in a significant amount of pessimism, making it an opportune time for investment in copper and aluminum sectors. The influx of long-term capital is expected to enhance pricing power and support the recovery of copper and aluminum values [7][8]. Precious Metals - The report maintains a bullish outlook on precious metals, particularly gold, driven by expectations of interest rate cuts. It suggests that gold stocks may experience a quarterly-level resonance across price, valuation, and style dimensions. The recommendation is to increase allocation to gold stocks, especially after gold prices stabilize above $3,500 per ounce [5][6]. Strategic Metals - The report emphasizes the strategic importance of rare earths and tungsten, noting that the value of these metals is being reassessed. The government is intensifying control over resources and smelting, which is expected to enhance the long-term strategic value of rare earths amid ongoing trade tensions. The report also highlights the potential for price increases in tungsten due to supply constraints and improving macroeconomic expectations [8][9].