Business reporters, like those on the ABC, keep referring erroneously to BHP Billiton and Rio Tinto as diversified
John Robertson
PortfolioDirect
Business reporters, like those on the ABC, keep referring erroneously to BHP Billiton and Rio Tinto as diversified. The days when copper and iron ore moved to a different beat and it made sense to distinguish metals from bulk commodities have long gone. Iron ore and copper are now the same commodity, at least as far as their risk profiles and economic attributes are concerned. Consequently, the two Australian market leaders are no longer diversified in an economic sense since the largest part of their earnings come from these two commodities. That poses a giant problem for nearly everyone with exposure to an Australian equities portfolio. The most widely held stock - BHP Billiton - is being bought on a mistake. It has a de facto risk profile few would knowingly choose against the backdrop of overstocking of these two commodities by Chinese financiers.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
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