Report Cover Page

Contents

Where are we in the Cycle?
Cyclical positioning remains constrained by the absence of any growth acceleration. The U.S. presidential election offers a chance of near-term improved economic performance in the event of a Trump victory with a willingness to implement the candidate’s policy platform. More...

Market Directions
Markets have been dominated by changing expectations about a Clinton presidential victory. Prices fell when polls showed a rising chance of a Trump win. More...

Portfolio Performance and Positioning
Losses were posted across the board in the portfolio models. The relatively large loss in the Phase I segment reflected a partial retracement from extraordinarily high gains in the previous week. No stock changes were made and high cash levels have been retained. More...

Stock Reviews and Rating Analysis
Deep Yellow (DYL:AU) has referred to an arrangement with a US investor to raise $1.42M as a “strategic relationship” which implies more to come about future dealings. At the same time, the managing director of Deep Yellow was replaced by the former head of Paladin Energy, another company involved in developing uranium properties in Namibia. The Deep Yellow share price had been underperforming the price of Namibian uranium neighbour Bannerman Resources since the beginning of 2016 but, after being among the top five performing resources stocks listed on the ASX, the difference has narrowed from over 50 percentage points to less than 10. The PortfolioDirect judgment expressed recently in the Steak or Sizzle? blog is that the company does have a credible exploration program with a resource base capable of eventual commercial production in a sector with underpriced assets given demonstrable longer term growth in uranium usage. .
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