At this stage of the cycle we believe it’s way too late to be buying resource stocks with our recent moves being on the sell side having taken profits in Whitehaven Coal (WHC), Oz Minerals (OZL) & Santos (STO) in recent weeks. We are now underweight the sector holding positions only in BHP & Newcrest (NCM). Our medium term view on commodities is a bullish one, our short term tactical stance has been to lock in profits into panic spikes higher with the view of buying back in when the dust settles.
We are medium term bulls on BHP, we think it’s ideally positioned over the coming years and given our current 6% weighting we remain comfortable holders around $50, although a decent spike higher would see us likely sellers, or a pullback would see us as likely buyers. For now, we “watch and wait” but subscribers should expect further moves around the holding in the coming months.
MM would be sellers of BHP above $55 or buyers nearer $45
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