In US markets overnight we saw the Materials Sector fall -3.3% as economic growth forecasts were challenged by the current banking worries, a change to the recent fixation with interest rates, ironically the very cause of today’s banking woes.
- We remain bullish toward value stocks over the medium/longer term and subsequent buyers of weakness.
Hence in our opinion, the current short-term volatility is providing excellent risk/reward buying opportunities across the sector, and although we might still get a recession the recent corrections of 20% or more across the sector illustrate that some of this is already built into prices. MIN has been caught up in the ESG washout over recent months even though iron ore prices have been firm in 2023 which is likely to see this iron ore & lithium miner extend its recent correction to over 20%.
MM is considering buying MIN ideally around $76, or 5% lower
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