I did a quite unusual thing today

I bought shares in Rio Tinto.

It's a stock in a sector that I almost never go near: indeed, it's the first time I've owned this stock in almost a decade-and-a-half.

The hatred, fear and vitriol towards this sector is palpable, and all the wailing and gnashing of teeth I hear today from the so-called "analysts" and "financial" journalists, tells me that the point of capitulation is upon us.

At 5x EV/EBITDA and a 7% FCF yield (translating into a 6% dividend yield), when we are likely to be close to the bottom of the commodity cycle is an attractive offering, I think.

To my way of thinking, the current hysteria and despair around the resources sector has a certain GFC-esque feel to it.

The Recency Phenomenon abounds.