HOLD Rio Tinto (RIO)
Expectation is that iron ore prices will slowly fall. A demandside bear case is priced in, so it’s the supply side that will run the show for a bit. China doesn’t have many levers to pull, so we may see a kick yet.
Strong reporting and decent growth despite rising raw material costs. Integration of fellow packaging company Bemis looks good. Let’s hold here and see what they can do.
SELL James Hardie Industries (JHX)
Very strong results and positive guidance, but this is a very cyclical stock with a lot of expectations being priced in. QBE Insurance (QBE) Market at all-time highs, and we don’t expect interest rate rises short term. Happy to take insurance risk out of portfolios.