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“The resource sector should do reasonably well as the economy starts to turn,” agreed independent analyst Dave Paterson.
However, Lee cautioned, natural resource funds have already “staged a huge rally off their lows from earlier this year, and the bounce may be getting ahead of the economic recovery.”
Pointing to other rallies in time when small-cap stocks have led the way, independent analyst Dan Hallett is again bullish on the stocks. “They have more growth potential,” he said.
Another independent analyst, Peter Loach, is optimistic about core funds, especially since they have been hit very hard in the downturn.