The junior sector continues to miss out on the party

Anyone would think that the world is full of roses rights now, given the strength of broader equity markets. Even the statement that interest rates won't fall just yet didn't worry the investors. Instead, it sent the Dow and the gold price to record highs. So, what do you make of it? What is technically bad news - the delay in the interest rate cuts - is driving markets higher.

Yet, the resources sector continues to be under downward pressure in contrast to the rest of the market. Iron ore prices are coming off, which affects our leaders, while the junior end is almost brain dead. Fundamentals only play a minor role at that end, as it is all about sentiment and enthusiasm - or lack thereof.
 

 WeeklyComm23March2024.pdf