PortfolioDirect has highlighted a sharp contrast between resources sector index performance and individual stock price outcomes
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 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
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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...
Expertise
No areas of expertise