I think it's hard as Aussies to accept that the resource sector is a big dud because mining is such a big part of Aussie life. How many traders here once worked in the mines or a mining town? We know we have an abundance of resources so its hard to imagine billionaires with holes in the ground not being able to manipulate a good profit out of them but reality is, billionaires are following the push into into commodities.
Gina Rinehart, Gerry Harvey have joined the dairy industry and Twiggy Forrest is already a cattle man. Where will it go and what will be it take on its rise? = eg stockfeed suppliers, packaging companies? Milk, butter, meat, gourmet produce?
I have no real predictions re the dairy industry, except follow the big money. But be careful. The cattle industry mafia don't like change.
I believe tech and IoT will make giant leaps this year as global targets create a frenzy of support and opportunity. Last year presented opportunity in some tiny market cap tech stocks and this year should do the same but also the better stocks will grow into bigger market caps as their dreams become commercialised. And no doubt quite a few will go back onto the merry-go-round and replace dud acquisitions with (hopefully) better ones.
The potential I see with the tech industry and this may have contributed to the last tech bubble is that acquisitions are based on ideas which are potentially limitless in an ever-changing society whereas mining is restricted by budget and subject to resources being in the ground in the first place. For a small market cap company, the prospect of hiring expensive drilling equipment and hoping the survey signals were correct and that the drilling will reflect this, would be quite formidable in a bear resources market, as opposed to listening to a bunch of tech ideas and choosing one that sounds good and trying to showcase it in a way that you can raise a bit of capital, when the world is going crazy about apps, wireless and wearables.
Medical techs like Alcidion will benefit from ObamaCare's goals to have a huge percentage of medical records digitalised by 2017 and I believe good old AJX is in for a stellar run this year as it turns trial customers into commercial realities.
What will happen to the weed stocks in 2016? Will they get their second chance? NSW Medical cannabis is on the agenda and IMO this sector might be the surprise jack in the box for the year. If it is decriminalised, I can see MJ stocks going berserk, not out of real commercial opportunity but because all the goody goodies who wouldn't get on board while it was illegal, will want a piece of the pie. And what a weed bubble that will be.
