Where are we in the Cycle?
Of the five PortfolioDirect cyclical guideposts, two are flashing ‘amber’ and three remain ‘red’. Sluggish productivity growth, exacerbated by war in Europe, intensifying trade restrictions and central bank efforts to quell inflation, remains a constraint on raw material demand expansion. Chinese growth momentum has been on a weakening trend. A rising US dollar, one previously overt negative factor, has stalled after a modest reversal of prior gains.  Metal market supply anxieties have become less severe. The cyclical positioning is in the latter stages of a ‘downswing’ phase.       More...

Market Directions
Capital flows connected to retail equity investors contracted with the withdrawal of unprecedentedly supportive monetary and fiscal conditions and the inflation surge which cut the value of personal income and savings. Professional money, by continuing to discount a recession, has provided market relief for the most growth oriented and most well-established businesses.  Heavily hyped energy storage innovations are yet to affect metal demand meaningfully.  Nor have higher metal price risk premiums had a correspondingly beneficial impact on related equity valuations.  New tax incentives are diverting capital for mine development and downstream processing capacity to sponsoring nations. Persistence of a 1990s-style investment performance - when modest sector equity price gains occurred in the midst of sometimes highly disruptive macro conditions - remains the underlying theme.      More...

Portfolio Performance and Positioning
Strong gains among a small number of Phase I investments partially offset more wide ranging losses across all three development categories in the past week resulting in gains for the Phase I and Phase II segments for the month as a whole after both had lost ground in April.   A continuing dearth of discovery success and persistent macroeconomic constraints on capital flows remain drags on performance for the bulk of the sector. Phase I returns would likely display the greatest leverage to eventual monetary policy easing.  Although further along the development path and closer to profitability, Phase II companies carry risks arising from relatively high indebtedness and heavy reliance on execution success in sometimes unfamiliar markets and untested management.  Performance within the Phase III category is more likely to be driven by capital allocations responding to longer term views of changing macro conditions and cross sector valuations, both primary concerns of institutional fund managers.      More...

Stock Reviews and Rating Analysis 
PortfolioDirect rating reports analyse the quality and risk attributes of proposed mineral developments.  Rating criteria apply to mining and oil and gas stocks at any stage of development.  PortfolioDirect uses a five point rating scale to measure the risk adjusted quality of proposed mineral developments or companies.    
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The 'Steak or Sizzle' blog provides summary judgements on the top performing ASX-listed resources stocks. More...