Resources Buyers Return For The Cash Flow

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By Greg Peel

UBS has found that those attending their annual resources conference had a largely positive outlook on the sector. 57% of the respondents to an audience poll expect the Resources Index to rise 10% or more in the next 12 months.

55% of respondents are overweight resources, although this is down from 61% at the same time last year.

63% said they were buyers of resources at the moment, which is a big step up from the 40% figure last year. There were no measures of anyone having sold over the last couple of months.

UBS asked the question "Why do you invest in resources?", to which this year the most popular response was "strong cash flow". Last year it was "growth".

The greatest risk to resources? This year the US economy, last year a Chinese slowdown.

On the other side of town attendees at a Star Trek convention were asked whether they owned Star Trek memorabilia. More than 50% of them said yes! Blow me down.

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