BHP Billiton (BHP): 'Avalanche of upgrades'

"China's most recent industrial production number hit a yearly high of 12%, bolstered by strong power generation and construction data. With property and construction industries accounting for 50% of China's steel consumption, it's no secret why everyone is excited about materials.

"Developed economies like France, Germany and Japan have also seen their industrial production numbers jump, albeit from depressed levels. And the US has also put up stronger numbers.

"At the same time, the weakness of the US dollar -- the funding currency of choice -- bodes well for commodities and mining stocks. Although the weakness of the dollar is a long-term structural trend, no one should expect the greenback to just go away.

"Any violent move on the downside will not be beneficial to any one. But metals will continue to benefit as long as the fluctuations are contained and any weakness takes place in an orderly fashion.

"At the same time, supply remains tight because a lot of companies have curtailed production until demand appears to be sustainably higher.

"Although portfolio holding BHP Billiton is one of the top diversified miners in the world, its energy exposure raises its appeal even more.

"Nuclear energy is of particular importance because it's rapidly becoming an acceptable 'green' energy alternative, especially in China.

"Conservative estimates expect China's nuclear energy capacity to grow at a compound annual rate of 8% over the next 15 years."

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