Aussie media is swirling over the GREAT ASSET TRANSITION.
What do I mean?
Big money is moving out of the banks and into undervalued mining stocks.
Like this article from the AFR last week:
“Big super joins great rotation out of CBA and towards mining giants.”
According to the piece, the country’s largest superannuation fund (Australian Super) is moving retirement savings out of the Commonwealth Bank and into resources.
According to the AFR, it’s a sign that the market is rotating back towards an underperforming commodities sector.
You can read the full article here.
Mining Memo’s Take
If you’ve been reading Mining Memo, you’ll be well ahead of the mainstream curve on this one!
Almost 6 months ago, I detailed a piece on the inevitable ‘asset rotation,’ where capital would shift back into commodities.
This is what I wrote back in February 2025 (emphasis added):
In 2019, resources fell to just 15% as a share of the top 100 stocks on the ASX.
But what’s important is that we’ve only been at these historically low levels twice in the last hundred years!
The first was during the Great Depression, when mining’s share of the Aussie market was just 10%.
Then, there was the late 1990s when mining’s share fell to around 15%.
As you might recognise, both periods preceded a boom in commodity markets.
The 1930s low was followed by 40 years of concentrated resource growth in the Aussie market. That eventually culminated in the Poseidon nickel boom of 1969.
Then, there were low commodity prices in the late 1990s.
That was followed by the China-led infrastructure boom, which led to higher mining stock valuations and mining’s larger capitalisation within the Aussie equity market.
These are two critically important periods for resource investors to understand.
In my mind, a major sector rotation could be unfolding… From the banks to the miners.
While that’s difficult to see in real-time, past events help us formulate future probabilities.
In other words, the changing fabric of Australia’s equity market over the last century suggests mining stocks could be poised for much higher valuations.
You can read the full piece from February here.
So what does this show you?
You need to act BEFORE these events hit the headlines.
For the last two years, my paid readership group, Diggers and Drillers, has been implementing the idea of a ‘great asset rotation’ back into mining stocks.
We didn’t know WHEN it would happen; just that it would be inevitable.
Since we were early, we focused on the highest quality names, stocks typically moving up in this cycle, first.
And already, many of our picks have made double, sometimes triple-digit gains.
But there’s still time to get involved!
We’re still in the early stages of what’s becoming a major GLOBAL asset rotation into commodities.
The last commodity bull cycle kickstarted in 2005 and continued until 2012… About 7 years.
But as the headlines show you, big money is starting to move—the starting gun for a new cycle.
And it’s striking the major players, like BHP, first.
Ultimately, money will trickle down into the smaller stocks—mid-tier producers—and then the explorers.
This latest news flow points to the IMMEDIACY of what’s now underway.
The asset transition is real, and it’s happening right now.
If you want to act, I suggest focusing on mid-cap mining stocks—companies still holding deep value.
You can get a taste of that through my entry-level service, Diggers & Drillers.
That comes with specific recommendations and buy/sell instructions.
Companies I’ve vetted, understand and trust. And stocks that I believe will become the NEXT cash heirs of this capital rotation.
Our portfolio is aligned with this capital movement, focusing on mid-cap producers of copper, gold, silver, uranium, and other critical minerals.
In other words, everything you need to benefit from a commodity resurgence!
Take care.
Regards,
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James Cooper,
Editor, Mining: Phase One and Diggers and Drillers
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