Should we start buying resource stocks now?
Nicholas Forsyth
Market Matters
The Brazilian-Ipovespa sharemarket closed down only 0.3%, a solid effort implying that the continuous selling of the emerging markets has become somewhat fatigued. Perhaps we are witnessing a case of "Buy on Rumour and sell on fact" in reverse? Hence, with the emerging markets index gaining strength this should also be good news for both the ASX200 and resource stocks. We think today is an ideal time to look closely at BHP, RIO and FMG. MarketMatters have not been huge fans of the resources sector as participants in this sector are price takers and cannot specifically determine their own profitability. However as mentioned previously we believe the sector has received a lot of the bad news i.e. China worries and depressed commodity prices. Technical indicators suggest that time and price is right to seek trading opportunities in major global resource players but continue to steer clear of longer term investments due to on-going China concerns. See full report looking at BHP, RIO and FMG (VIEW LINK)
Never miss an update
Enjoy this wire? Hit the ‘like’ button to let us know.
Stay up to date with my current content by
following me below and you’ll be notified every time I post a wire
Market Matters is an online investment and share trading advisory service designed for those that want to take their wealth further. We specialise in advice for active share market investors, including those new to the markets or those with a Self Managed Super Fund (SMSF). As a member, you will receive twice daily and weekly trading and investment advice focusing primarily on ASX equity investments. Additionally, we share his market positions and provide an ongoing outlook on key stocks and markets that matter. We provide clear share trading and investment buy and sell recommendations with the clear aim of outperforming the market. https://marketmatters.com.au/
3 stocks mentioned
Nicholas Forsyth
Director
Market Matters
Market Matters is an online investment and share trading advisory service designed for those that want to take their wealth further. We specialise in advice for active share market investors, including those new to the markets or those with a Self...
Expertise
No areas of expertise
Nicholas Forsyth
Director
Market Matters
Market Matters is an online investment and share trading advisory service designed for those that want to take their wealth further. We specialise in advice for active share market investors, including those new to the markets or those with a Self...
Expertise
No areas of expertise
Comments
Comments
Sign In or Join Free to comment