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

Uncertainty is Being Blamed for Predictable Outcomes

John Robertson

PortfolioDirect

Metal prices are constantly referred to as being volatile . ‘Volatility’ is frequently used as a substitute for ‘uncomfortably low’ in market descriptions. Volatility should diminish through the trough of the cycle. Consistent with that expectation and contrary to common usage, metal price volatility is nearly as low as it has been at any time in the past 35 years. The words ‘uncertainty’ and ‘volatility’ are being applied almost instinctively, sometimes to save embarrassment or create an excuse, even where ‘highly likely’ and ‘predictable’ are more apt descriptions for financial and economic outcomes. There are two further examples of the misuse of the terms ‘uncertainty’ and ‘volatility’ in this week’s PortfolioDirect investment report. (VIEW LINK) This is more than nitpicking over semantics. Misuse of the language to describe business conditions shows a failure, or possible unwillingness, to understand the true predicament of the mining industry which puts it at risk of failing to respond most effectively to the prevailing conditions and being unable to take advantage of possible opportunities.


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.