2 July 2018
Where are we in the Cycle?
Weak productivity outcomes among advanced economies and structural
impediments among developing economies are evident headwinds to the
advancement of an already mature cycle. Uncertainties over trade
restrictions are putting corporate investment decisions at risk at a
critical juncture. Supply constraints, monetary conditions and exchange
rates, important commodity price props, have become less supportive.
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Market Directions
Precious and industrial metal prices are on a downward trajectory. Iron
ore is weak but coal remains strong. Crude oil has risen again. Uranium
remains in a lengthy cyclical slump. Large mining stocks are holding up
best. The prices of explorers dropped further during the week and finished
lower over the June quarter despite strong rises among the market leaders. More...
Portfolio Performance and Positioning
Phase I stocks fell as funds flowed to lower risk investment
alternatives in markets generally as well as within the resources sector.
Relatively strong Phase III companies during June led to the macro portfolio
falling short of the performance benchmark which is dominated by the large
cap stocks. The macro portfolio remains tilted toward the smaller end of
the market and advanced exploration efforts where there is less correlation
with broader equity market conditions. No changes to the portfolio models
have been suggested. A modest cash position remains. More...
Stock Reviews and Rating Analysis
PortfolioDirect rating reports analyse the quality and risk
attributes of proposed mineral developments. Rating criteria apply to mining and oil and gas stocks at any stage of
development. PortfolioDirect uses a five point rating
scale to measure the risk adjusted quality of proposed mineral developments
or companies.
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The 'Steak or Sizzle' blog provides summary judgements on
the top performing ASX-listed resources stocks.
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