It might be early to start discussing levels to buy Australian miners into a potential pullback but as we all know things can unfold very quickly and preparation is a very important ingredient for successful investing. We touched on earlier that US fund managers believe the resources play has become extremely crowded and recent falls in the likes of copper suggests they might be onto something.
The Fed now envisage 2 rate hikes by the end of 2023, no change in direction just a relatively slight tweak in timing. The move which caught our eye the most overnight was the kick up to multi-week highs by the $US which has a negative read through for commodity prices if it continues, a good reason in itself to consider some levels where MM would like to accumulate resource stocks. Base metals have been on the proverbial charge over the last 18-months and a ~10% correction would hardly dent their advance but with investors heavily committed to the sector it could easily create a washout style fall.
