Commodities finally followed the MM script last week although the plunge caught even us by surprise and we’ve been calling a drop – markets love to move in the direction / speed of most pain! Resources stocks follow their respective commodities, in both directions, and recent weeks has been no exception e.g. Iron Ore -35% / Fortescue Metals (FMG) -25.5% and Copper -19.1% / Oz Minerals (OZL) -25.2%. Although the speed of last week’s descent by the stocks felt like investors hadn’t believed the initial pullback by commodities before literally panicking for the exits.
MM remains a buyer of resources stocks into weakness
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