The small resources share price index is showing how appearances can be deceiving
John Robertson
PortfolioDirect
The small resources share price index is showing how appearances can be deceiving. On Friday, the index closed at precisely the same level as on 9 July 2013 after having fallen by 70% over the prior two and a half years. Among the stocks currently in the index, there was a 301 percentage point spread between the best performing stock and the worst. Sixteen stocks produced returns in excess of 20%. Fourteen stocks had share price declines in excess of 20%. Strong gains offset by large losses have produced the appearance of stability. The action below the surface suggests a welcome break from the macro drivers which had dominated stock performance in this market segment for more than five years. There is a hint of more emphasis on individual stock characteristics as a performance guide. Let's hope people haven't forgotten how to choose.
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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.
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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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