| Since bottoming in June, the JPMorgan Natural Resources fund is up 18%. Although we are still more than 50% off our highs in 2011, this does signal that some sort of recovery is underway. Commodity prices are bottoming across the energy, precious and base metals sub-sectors in which we invest. This is encouraging generalist investors to reappraise the sector for the first time in two years.
At the stock level, we are finally coming to the end of a two-year earnings downgrades cycle in this sector. Glencore Xstrata (GLEN), one of the largest holdings in the portfolio, has been subject to consistent earnings downgrades throughout this period because of continual falls in commodity prices...............................................Full Article: Source
|