DSD, the reasons the market slowly and painfully sold down mining equities are well understood:
• Even given massive commodity price gains of the boom, the industry broadly made few returns to investors, because costs increased in line with commodity prices and margins were relatively static.
• When commodity prices weakened, the exuberance of the boom finally left the collective psyche of investors, who quickly lost patience with miners.
• In a low interest rate environment, stocks with even modest yields experienced better capital returns than miners, and for lower comparative risk.
• As there was no single catalyst the decline since 2011 was a slow death, unlike most busts which historically have been much more short lived.
Do you actually believe the obvious is a façade? If the obvious is that BLY are running at a loss, is your logic that this is a façade, means that they're not? (LOL)
- Forums
- ASX - By Stock
- how was your quarter?
DSD, the reasons the market slowly and painfully sold down...
-
- There are more pages in this discussion • 66 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add BLY (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
FHE
FRONTIER ENERGY LIMITED
Adam Kiley, CEO
Adam Kiley
CEO
SPONSORED BY The Market Online