It has been the surprise story for 2016. A bottoming in commodity prices triggered an aggressive bounce in resources stocks and the services companies exposed the sector. The moves were so swift that many investors haven’t participated in the gains. As Steve Johnson quipped earlier this year, “It is uncertainty that creates the opportunity and, the second the uncertainty abates, the opportunity disappears with it.” Whilst a level of stability has returned to the resources sector, many would argue that the outlook is anything but certain. Global growth projections remain sluggish and there are some serious concerns about the sustainability of Chinese driven commodity consumption. In this thematic discussion Ben Rundle from NAOS and Alex Shevelev from Glennon Capital give their views on the outlook for the resources sector and share a few stocks that they believe still offer some value.
