Rudi's View | Jul 10 2025
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By Rudi Filapek-Vandyck, Editor
Market strategists at Goldman Sachs are preparing their clientele for a different cycle ahead. Don't worry, if their research is correct, investors still have circa two years to amend current strategy and portfolio composition.
The next economic cycle, on Goldman Sachs' assessment, will be characterised by higher inflation, elevated interest rates and heightened macroeconomic volatility, driven by six key factors which are captured through the acronym of 'Change'.
Change stands for Climate transition, High level of debt, Ageing demographics, New finance, Global fragmentation, andEvolving technology.
Shorter term, it is the strategists' view high valuations, trade uncertainty and geopolitical concerns warrant a more cautious asset allocation until year end. Goldman Sachs is neutral on equities, underweight credit and overweight rates (bonds) for the time being.
Given heightened policy risk in the US, the forecast is for continued outperformance of Developed Markets ex-US equities. The US dollar is expected to weaken. Small caps globally (outside of the US) are in focus.
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One place where expectations for a revival of the global mining sector remains alive and kicking is at RBC Capital Markets, headquartered in Canada, itself one of the world's commodity power houses, albeit with more of an energy skew than is the case for Australia.
Mining analysts at RBC are keeping an Overweight portfolio allocation for base metals, precious metals and uranium, and a Market Weight allocation for diversifieds and bulk miners, as well as for fertilisers.
Their selection of Global Mining Best Ideas also includes several ASX-listed stocks:
-Bellevue Gold ((BGL))
-Capstone Copper ((CSC))
-Champion Iron Ore ((CIA))
-Firefly Metals ((FFM))
-NextGen Energy ((NXG))
-Pilbara Minerals ((PLS))
-South32 ((S32))
-Westgold Resources ((WGX))
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Zooming in on the local gold sector, Bell Potter's latest sector update suggests the best value opportunities are with developers and explorers, with the report specifically highlighting Santana Minerals ((SMI)) and Minerals 260 ((MI6)).
Chalice Mining ((CHN)) is equally Buy-rated by the broker.
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