At current prices, February is shaping up as the third consecutive month in which the small resources share price index will have outperformed the S&P/ASX 100...

John Robertson

PortfolioDirect

At current prices, February is shaping up as the third consecutive month in which the small resources share price index will have outperformed the S&P/ASX 100 resources index. Having three months line up in this way has not happened since the third quarter of 2010 and, before that, the second quarter of 2009. Banks have been outpacing the miners but large miners have trounced the small ones for more than two years. The gap in share price performance between the large cap resources stocks and the smaller companies in the sector is now showing some signs of stabilising after widening to just under 50% during 2013. The liquidation of smaller stocks characterising much of 2013 seems to have run its course and the smaller stocks in the sector are now displaying some of their historic leverage to improved background market conditions.


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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...

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