Today we’ve touched on the index and the banks, it would seem amiss to not also take a look at the influential Resources Sector. Below I’ve looked at iron ore which has corrected almost 20% in 2021 taking the related stocks lower in sympathy e.g. Fortescue Metals (FMG) -20% and RIO Tinto (RIO) -14%. Our preferred scenario is the bulk commodity has now bottomed and is poised to make fresh highs for 2021. Similarly, we believe the likes of copper will follow crude oil which is already making fresh 2021 highs.
The story remains the same, MM is long and bullish hence the only likely tweaks to our portfolios over the next few months are switching, similar to recent moves which has seen us follow our plan to buy Aristocrat (ALL) and Virgin Money (VUK) in the MM Growth Portfolio.
