Shift out of select cyclical-industrial stocks and start increasing exposure to resource companies. After taking profits on retail names such as Super Retail, Kathmandu and the Reject shop Ben Griffiths, Portfolio Manager at Eley Griffiths Group, has been steadily increasing his exposure to resources stocks. Griffiths' portfolio invests in ex100 stocks where resources make up about 20% of the index. Griffiths has been marching his portfolio exposure from a position of 7%-8% up towards 17%-18% with a view to reaching that 20% level. It is now becoming rather dangerous as a professional manager of money to bet against the resources market in favour of industrials. From a timing perspective Griffiths says the cycle is moving back towards a boom phase and fundamental prices are forming a base and moving higher. Recent additions include Sirius, PanAust, Independence Group, Western Areas and Sundance Energy. Starts at (1.50) excellent viewing (VIEW LINK)
Folks if you have some time I really recommend watching this video. Some very high conviction commentary explained in a straight forward manner from one of the best small cap managers.