Charteris Treasury's Williams: Market cycle is flagging 'extreme cheapness' in commodity assets

Miners in particular

Last spring, I highlighted that UK equity income investors would require a differentiated strategy with a high exposure to cyclical sectors (in particular, blue-chip mining shares) to achieve sustainable returns while protecting their capital.

As interest rates and inflation expectations continue to harden, this strategy still has much merit.  Since then, the UK equity income sector has experienced a number of shocks as several of the traditional safe haven stocks - such as Capita, GlaxoSmithKline, BT, Provident Financial, plus all the utility stocks - suffered significant losses that has cratered the performance of some well-known funds. The explanation for this is quite simple: all markets are cyclical in nature. The key, therefore, is to attempt to determine where we are in respect of underlying primary market cycles....