Journal to portfolio afterlife (13 lettori)

portfolioafterlife

too fast for love
Registrato
13 Dicembre 2021
Messaggi
5.115
1659782952055.png


 

portfolioafterlife

too fast for love
Registrato
13 Dicembre 2021
Messaggi
5.115
From the early June highs, the Bloomberg Commodity Index (BCOM)13 fell 20% in four weeks, from 136.61 to 110.75 (see Figure 1 far right, orange arrow), the quickest plunge since the GFC (global financial crisis) and the March 2020 COVID selloff. There was no comparable economic or market calamity to explain this sudden significant liquidation.
Gold mining equities, as expected, fared worse, with maximum drawdowns in the -35% to -40% range for the energy, industrial metals miners and precious metals miners sectors.
In Figure 5b, we show how the gold miners have fallen back to their 10-year low range on a valuation basis. Historical analysis indicates that when the gold miners' EV/EBITDA15 ratio falls below 6x, the potential return within a six-month window has been about 21% on average over the past 10 years. Also noteworthy is the current de-rating in the EV/EBITDA ratio is one of the most significant in more than 10 years.
chart5b.png


 
Ultima modifica:

Users Who Are Viewing This Discussione (Users: 0, Guests: 13)

Alto