The combination of market uncertainty and inflation fears was enough to offset rising bond yields for the struggling Australian gold stocks on Wednesday, for a pleasant change they dominated the top performers on yesterdays boards. MM took the opportunity to tweak our holding in NCM down from 7% to 5%, this was not a huge vote against the sector but more a case of prudent portfolio construction as we foresee rising bond yields moving forward – in our opinion gold stocks are the cheapest group on the ASX but it can take an age for the market to let a sector leave the unloved or naughty corner.
MM still likes NCM around $22 even though we trimmed our large overweight
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