Hartleys says we may be close to the bottom of the resources cycle. The Australian.
DAVID Michael thinks it may be just about time to ring the bell for the bottom of the resources cycle.
The investment adviser at Perth broker Hartleys has a 10-year chart that can be read to indicate we have, as in late 2008, started to form a bottom.
The chart shown here of the S&P/ASX Small Resources Index shows stocks reaching their zenith just before the GFC struck, then plunging.
The next peak forms around the end of 2010 but thereafter it drops in stages to its present dismal state, and only slightly off the low in late 2008.
LATIN American resources will be in the news this week with 10 government delegations from that region in Sydney when a two-day shindig will highlight what can be dug out of the ground on the other side of the Pacific. It will make a change from the heavy African focus of recent years.
Officials from the big boys (Brazil, Chile, Peru and Mexico) will be joined by those from emerging plays such as Colombia, Guyana, Nicaragua and the Dominican Republic. There’s also one from Bolivia but they may have a harder job convincing our juniors that things will always work well with the crowd running the joint in La Paz.