Mining emerges as stand-out sector

Mining companies are the place to be, while financials and oil and gas should be avoided, according to New Star fund manager Tim Steer. Steer claimed mining companies have everything going for them, pointing out the big five companies will have $70bn in cash by 2010. In addition, commodity prices are rising and the mining sector is expected to achieve 8%-9% production growth to 2013. However, Steer was much less positive on financials because of their exposure to asset backed commercial paper, the fact their margins are being affected by high funding costs and the possibility of rising ...