Thematic Trading: Beware of brokers bearing iron ore gifts
The correction in iron ore prices and the corresponding weakness in iron ore stocks can make it tempting to buy into them for value. If you’re an investor, as opposed to a trader, we would suggest that you need to consider some sobering facts about the state of the iron ore market before diving into to the contrarian investment argument that circles these iron ore stocks. At least go in with your eyes open. It reminds us of the value trap of the likes of Allco Financial, MFS and Babcock and Brown pre the GFC, which caught out seasoned traders and investors alike. Remember spot prices ignore the capital invested in projects. There are some lower risk ways to play the iron ore weakness which we detail in the full note (VIEW LINK)
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Tom is a Founder and Head of Wealth Management. For the past 10 years, he has been running the Wentworth Model Portfolios, focusing on macroeconomics and tactical equity positioning. These portfolios were initially created as a solution for "core wealth management" for Wentworth's HNW clients, and are now openly available online through the website. Everything starts with the macro, and then we work back from there in terms of asset allocation and positioning for risk. We work with leading independent research providers and have a structured approach that has worked very well over time. Outside of the core portfolios, we look for opportunities in the small to mid-cap sectors of the market, where our experience can add value.
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Tom is a Founder and Head of Wealth Management. For the past 10 years, he has been running the Wentworth Model Portfolios, focusing on macroeconomics and tactical equity positioning. These portfolios were initially created as a solution for "core...
Expertise
Tom is a Founder and Head of Wealth Management. For the past 10 years, he has been running the Wentworth Model Portfolios, focusing on macroeconomics and tactical equity positioning. These portfolios were initially created as a solution for "core...
Expertise
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