Investment Strategy for ASX Markets
Understanding the Bank-to-Miner Rotation in Australian Markets
The bank-to-miner rotation represents a fundamental capital flow shift in Australian equity markets where investors strategically reallocate funds from banking stocks toward mining and resource companies. This rebalancing typically occurs when banking valuations become stretched after periods of outperformance, while resource companies present relatively more attractive valuations and growth potential.
This rotation happens in predictable cycles, influenced by economic conditions, commodity prices, interest rate environments, and global demand patterns—particularly from China. For investors, understanding this rotation cycle provides a valuable framework for…
