What are learned friend is trying to say is that the reason BCI outperforms AGO in this environment is also the reason why AGO outperformed BCI a few years back - Growth!
BCI has none - but in this environment its viewed as a "good" thing - So all the scared and nervous - who are usually the optimistic and greedy at the top of markets can hide in their caves and buy yield. Good luck to them.
Well guess what folks, if you fail to reinvest in your business and you have no "growth" profile - you inevitably end up with the law of diminishing returns! Market hasn't yet clicked into this mode as yet - but as we know with all cycles, it will.
At that time (in that environment) a scenario which the market is pricing like it will never return , it will be BCI who is being "punished" for no growth and Atlas reaping the spoils.
So provided AGO can "survive" this environment, it will again see brighter days ahead. Unfortunately this market is irrationally nervous, scared and beaten up by lack of performance - it will take time to mend, but make sure you have some stock for when the sheep decide to head in the other direction again. That will be fun indeed.
AGO Price at posting:
74.5¢ Sentiment: None Disclosure: Not Held
