If it digs, buy it! So says the market today, helped long by some AFR cheer leading from London-based Ian Harnett of Absolute Research Strategy:
“Markets have sold off and the degree to which basic resource stocks have really slashed their capital expenditure and you don’t need much of turnaround in demand or commodity prices to trigger a significant shift [in prices],” Harnett told Fairfax Media.
The ASR team had done extensive work to understand the sell-off that befell markets in the early part of the year that made these stocks cheap.
