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</a> For the first time in two years of persistent underperformance, natural resource equities are showing signs of life. These bombed out stocks have dramatically lagged, showing characteristics seen in Japanese and European equities prior to their recent re-ratings. Since the trough on June 25, the JPM Natural Resources Fund is up 18pc. Cyclical sectors in general have started to do better than defensive parts of the equity market as the improving economy signals recovery.