A higher allocation of funds to the resources sector continues to depend critically on evidence of an acceleration in global economic activity
John Robertson
PortfolioDirect
A higher allocation of funds to the resources sector continues to depend critically on evidence of an acceleration in global economic activity. Within the context, signs of a revitalising European recovery provide some evidence of an important change of pace emanating from that region. The chart shows the growth in euro money supply (M3) based on statistics released by the European Central Bank yesterday. The February monthly growth rate was the highest since 2008. The money supply increase is a necessary but not sufficient condition for an acceleration in economic activity. The asset buying program conducted by the ECB will create an environment for an improvement in growth but, as in the USA, purchases of financial assets do not of themselves lead to stronger activity. In Europe, still relatively tight lending conditions and low inflation as well as uncertainties about future demand are hindering the speed of the connection.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
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John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
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