18 March 2019
Where are we in the Cycle?
Of the five PortfolioDirect cyclical guideposts, two are ‘red’ and three
‘amber’. The cyclical positioning has been classified as ‘downswing’ with
global growth decelerating, a loss of output momentum in China, the largest
national user of metal, and less supportive monetary policy settings than
have prevailed for most of the post-2009 period.
More...
Market Directions
Equity markets finished the week with an upward bias despite ongoing
concerns about slowing global economic growth. The US Federal Reserve has
contributed significantly to more buoyant market conditions. Expectations of
a favourable resolution to the China-US trade disputes is creating
expectations of a near term growth fillip despite slowing growth in the USA
and China reflecting more deep seated structural impediments. The momentum
of resource sector equity prices has stalled despite this broader market
strength.
More...
Portfolio Performance and Positioning
Valuations for the principal portfolio segments showed little change in
the past week with Phase I stocks displaying relatively stronger outcomes. A
relatively large weighting in Phase I companies, which have not benefitted
from positive equity market conditions and are likely to offer a lower
correlation to adverse global growth outcomes, has been retained. After
several portfolio changes at the beginning of March to reflect relative
performance outcomes, no further changes have been made.
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.
More...
The 'Steak or Sizzle' blog provides summary judgements on
the top performing ASX-listed resources stocks.
More...