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Contents

Where are we in the Cycle?
Sector prices improved slightly in the past week but still appear short of their low point for the cycle. Despite recent emphasis on the importance of oil prices for markets and as indicators of global growth, there is no history to suggest a permanently high correlation between oil prices and markets.   More...

Market Directions
Did Japan’s central bank engineer a 0.1 percentage point cut in bond yields or did it reduce them by 50%? In other words, how significant for markets is a reduction in 10 year yields from 0.2% to 0.1% after decades of trying to reflate a moribund economy?   More...

Portfolio Performance and Positioning
The ASX 200 Resources benchmark ran slightly ahead of the PortfolioDirect macro model in the past week. Phase II companies lost ground against the Phase I and Phase III segments. The macro model finished January ahead of the benchmark for the ninth consecutive month and for all but three months out of the past 24.    More...

Stock Reviews and Rating Analysis
PortfolioDirect uses a quality/risk framework to rate resources companies. Those companies receiving the highest ratings will have high quality assets and a relatively low risk profile. In essence, the rating attempts to assess the capacity of a company to meet its business and operational targets. The PortfolioDirect approach separates the stock rating from the macro factors driving markets. These factors are taken into account in the structure of the portfolio models which are reported on each week.
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DAILY BRIEFING: The PortfolioDirect market diary offers brief thoughts on current issues affecting sector investment strategies.

Although the statements of fact in this communication have been added from and are based upon sources E.I.M. Capital Managers Pty Ltd, the publisher, believes to be reliable, their accuracy is not guaranteed and any such information may be incomplete or condensed.

All opinions and estimates in this communication constitute judgments by E.I.M. Capital Managers as of the date of this communication and are subject to change without notice. The publisher is under no obligation to make public any change in view about any matter referred to in this or any linked documents.

No references to past investment performance should be taken to indicate anything about future performance.

This communication is directed only to Australian wholesale investors and licensed financial advisers for information purposes and is not intended as an offer or solicitation with respect to the purchase or sale of a security.