Resource sector

Many things do not add up.  There must be some brilliant investors out there.  Yet, either I fail to understand how profit is made or the intricacies of the financial world, or the law of simple arithmetic does not apply to the market place.  Many many years ago, when PE ratios for some stocks in the Tokyo Stock Exchange  went over 1000, the Japanese were telling the world that they don't understand how the TSE works.  Well, the Japanese have not recovered from that exuberance.

The Chinese government is going to stimulate its economy, USA economy is improving, EU is stagnant (in status quo) and AUD and the POG have remained steady.  Metal prices have not plunged nor rallied.

So why industrials are zooming ahead while resource stocks are crumbling, I have no idea.  But neither would I sell my stocks.  In fact, I am watching...  It does not help that gold producers are coming up with news like falling gold production, processing plants failing, sovereign risk, debt problems...