Livewire has acquired Market Index, the country’s leader in free stock market data.
Find out why.

PortfolioDirect has highlighted a sharp contrast between resources sector index performance and individual stock price outcomes

John Robertson

PortfolioDirect

PortfolioDirect has highlighted a sharp contrast between resources sector index performance and individual stock price outcomes. Since mid July 2013, the small resources share price index has risen at a 1.6% annual rate much like the 0.7% rate of increase in 1998-2002. Among the 50 index stocks, however, the average absolute move has been 45%. Rather than the average being typical of the whole, wide disparities in returns have resulted in the very moderate index rise. All the stocks currently in the index have traded at a higher price after July 2013 with a median rise of 41% between July and the subsequent highest price. Having traded up, however, the median subsequent decline in price has been 26%. These patterns raise important questions about how to invest in the sector including the relative benefits of buy and hold and momentum investing.


John Robertson
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

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.