Market Comment
Forty years ago today Apollo 11 took off on what was to prove a defining moment in the space race. After succeeding in putting a man on the Moon, it is fair to say that astronautical progress since has not really matched (perhaps overly optimistic) expectations. Various US administrations in the 60's and 70's were committed to a goal of having a man on Mars by the end of the 20th century. Investors in financial and economic markets meanwhile have also been rapidly brought back down to earth by the various interconnected events of the past eighteen months. And whilst we are unlikely to see a full scale lift-off anytime soon, there are legitimate reasons to believe a genuine economic and financial markets recovery is underway.

Peter Hambro Mining - Buy
Several quality gold miners do not adequately reflect their earnings potential at current gold prices, let alone levels above US$1000 an ounce. Take Peter Hambro Mining which is making all the right noises. The group’s production ramp up is on track, costs are under control and there is even talk of resuming dividend payouts. Yet the company trades on a forward earnings multiple of just 11 times, compare that to sector darling Randgold Resources on a racy 60 times earnings. 

JD Wetherspoon - Hold
With unemployment reaching its highest level since the Labour Party came to power, Gordon Brown may be headed for the drinks cabinet. Should he wish to drown his sorrows economically, there is no question he should join the many others at his local JD Wetherspoon pub (LSE, JDW). The pub chain’s value offering is perfect for a recession and thanks to the sort of balance sheet that its peers can only dream off, the company’s rapid expansion is helping secure market share.

Royal Dutch Shell - Hold
All eyes are on one of the world’s oil industry heavyweights, with its June quarter operating and financial results just around the corner. As we have consistently highlighted, oil’s longer-term supply-side pressures are still significant and have not gone away simply because of the global economic crisis. This means that oil majors like Shell are interesting industry barometers.

Japan - Hold
For Japanese Prime Minister Taro Aso next month could be his last at the helm. Having called a snap election, opinion polls suggest that the Japanese public want change… not surprising given their economic plight in recent times. With the Bank of Japan having raised its economic assessment for a third consecutive month, in our view the state remains on the cusp of a protracted period of gradual growth and change could provide added impetus.