Resource Sector Strategy – Weekly Investment Report
This week’s PortfolioDirect investment report highlights the first sign in many months of an improved cyclical position for the resources sector although the gap between current positioning and earlier cycles shown in our model of cycle timing remains wide and a drag on sentiment. Some respite from a rising US dollar and firmer oil and iron ore market conditions have helped the sector. Falling sector volatility has also been broadly supportive. A swing in the direction of bond yields in Europe and the USA is having a dampening effect on equity markets generally which may lead to some reappraisal at the margin of the ongoing returns from more strongly performing equity sectors in favour of resources. The PortfolioDirect report is available here (VIEW LINK)
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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