Resource sector returns have been bouncing between the extremes of the range of feasible outcomes in each of the last 10 calendar years, as illustrated in the chart. Not only are each of the calendar year movements over the past decade abnormally large there is a tendency for them to be correlated across years leading to prolonged periods of unusually strong as well as unusually weak returns. This pattern of returns ultimately detracts from investor support. Greater investor interest may not require prolonged periods of outstanding returns - although that would be accepted gratefully by long suffering sector investors - as much as the more moderate outcomes which have been conspicuously absent.


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James Marlay

great little chart John