Resource Sector Strategy – Weekly Investment Report
Indicators continue to point to deteriorating cyclical conditions with no evident improvement in growth prospects and a resurgence in the U.S. dollar. Also this week: why bond yields may have already adjusted; and, Euro area growth remains confined to a narrow base reducing the likelihood of an acceleration in activity. A more positive equity market tone helped resource sector prices but the week finished with downward pressure on gold and oil markets. Also: why gold equity prices need more bullion support just to hold steady; and, the connection between earnings and S&P 500 equity prices. There were no recommended portfolio changes. Stock highlight: Universal Coal (UNV:AX) continues to track well against its targeted operational outcomes which anticipate rising production between 2015 and 2019. The company is an unusual example of a profitable coal mine developer with positive value momentum possibly escaping attention because it is servicing the South African market - a big advantage over others in the sector at this point in the cycle. The PortfolioDirect report is available here (VIEW LINK)
Welcome to Livewire, Australia’s most trusted source of investment insights and analysis.
To continue reading this wire and get unlimited access to Livewire, join for free now and become a more informed and confident investor.
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
No areas of expertise
Please sign in to comment on this wire.