Pengana's Head of Resources says high price of Iron-Ore is worrying

Pengana's Head of Resources says high price of Iron-Ore is worrying. Ric Ronge, fund manager at Pengana Capital says many stocks in the resources sector are currently under-valued based on commodity prices - except for those exposed to Iron Ore. In the post Global Financial Crisis world we've seen investors really seek income assets in preference to growth assets, so much so that in over the past two and a half years we've seen a marked performance differential between the two. We're starting to see some commentaries noticing this and calling it the great rotation. A large portion of the market got used to something that wasn't sustainable. In terms of specific commodities, Ronge said the high price of iron ore was worrying, when compared to the low price of steel. Energy continues to look very good, while the price of gold is supported at current levels. (VIEW LINK)


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