Is it time for Big4 to Resources Switch?

Hi Karl,

An extremely pertinent question and one considered daily at MM as we consider optimal sector tilts for what comes next. There are two parts to this equation, it doesn’t have to be a switch per se, we may reduce banks and then increase resources exposure at different times.

• Banks, we have remained bullish the “Big Four” banks through 2024 but ANZ is slowly approaching our $31 initial target and we will consider reducing our exposure to the sector  over the coming weeks if it advances another ~3-5%.
• The resources still “look and feel” heavy, and a foray by BHP below $40 wouldn’t surprise hence we remain patient with regard to increasing our exposure to the “Big Australian” and related names.

If subscribers are looking for a time to switch and then set and forget at this stage, we can see further outperformance by the banks hence MM is remaining patient for now.

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BHP Group (BHP) v Commonwealth Bank (CBA)

LAST UPDATED 18/07/2024 14:53

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chart

BHP Group (BHP) v Commonwealth Bank (CBA)

LAST UPDATED 18/07/2024 14:53