Small end continues to struggle

Small end continues to struggle

There continues to be quite a divergence between the performance of the larger stocks and the bulk of the resource companies. The four indices we cover, being the All Ords (XAO), Metals and Mining (XMM), Energy (XEJ) and Information Technology (XIJ) are all looking good but there are many sick juniors.

The good performance in December, when we seemed to have turned the corner, has been met with a baseball bat in January. That has come as a surprise to most of us, including me. Eventually we know that the better performance of the larger stocks will trickle down to the smaller end, but when?