The resources sector has once again been a great place to be invested in 2017. Year-to-date the S&P/ASX 200 Resources (Index: ^AXJR) (ASX: XJR) has recorded a gain of over 14%, almost three times greater than the S&P/ASX 200.
Considering the recovery in commodity prices and the positive outlook on the global economy, I expect there's a strong chance that resources shares could outperform again in 2018.
With that in mind, should you invest in these popular resources shares?
BHP Billiton Limited (ASX: BHP)
As I'm bullish on oil prices in 2018 and also expect iron ore to recover slightly, I think BHP could be a good option for investors looking to gain exposure to the resources sector. After all, with almost two-thirds of its EBITDA generated through its petroleum and iron ore businesses, the price performance of these two commodities has a major impact on its full-year results.
Lepidico Ltd (ASX: LPD)
Lepidico is focused on the exploration, development, and production of lithium and recently welcomed Galaxy Resources Limited (ASX: GXY) as a major shareholder. The lithium giant appears to have been attracted to Lepidico's L-Max metallurgical process that has successfully produced lithium carbonate from non-conventional sources. Management believes the process has the potential to disrupt the lithium market by providing additional lithium supply from alternative sources. As promising as it is, I feel it is looking fully valued now and would class it as a hold.
