AHEAD OF THE CROWD by Lawrence Roulston

Investors are slowly returning to the resource markets. The metal prices are generally recovering from their lows and share prices for many companies appear to have bottomed. Further, the global economic outlook is improving. Government stimulus programs across the developed world are creating concerns for the long term value of currencies, and making precious metals and other hard assets look attractive.

While the worst may be over for resource companies, it may be some time yet before there is a broad recovery in the markets. At this moment, the markets are in the hands of a few investors -- those most familiar with the cycles in the resource markets. While those knowledgeable investors are accumulating positions in the best quality companies, other investors are still on the sidelines.

The markets are poised for a rebound from a severely oversold position, but most investors are unwilling at this time to put money into the resource markets. As in every market cycle, money will flow into the markets after the uptrend is well established. By then, the best companies will already have posted big gains. Investors entering the market late will pay higher prices for the good companies, or will get the lower quality companies at (deservedly) low prices.

--- Lawrence Roulston, Resource Opportunities