Alcan and Inco not too good; CNQ and Talisman doublegood

Back in Canada there are three sectors that account for almost 70% of the S&P/TSX Composite Index; they are Financials; Energy; and Materials.

In the past three months, the Financials and the Composite Index are each up 8%.

But the big two in the Material sector, Alcan and Inco, are down 12% and 9.5% respectively; not too good.

On the other hand, the big two (in our view) Canadian Natural Resources ($54.20) and Talisman ($36.40) are up 30% and 17% respectively; extremely good, particularly if one was overweighted in energy and only equal or underweighted in materials.

In this three month period our rating system clearly favoured the oil and gas stocks. Hooray for the system!