JPMorgan Natural Resources -48% down but still hanging on

robatwork

dunstonh wrote: »

There are many strategies and each has merits. Some strategies will have better periods than others. The thing to avoid is having no strategy and doing random buying/selling.

I am wondering...

Is there any real research showing that completely random buying/selling is actually worse than an enthusiastic amateur which I class most on here as, planning strategically?


(Obviously within some ground rules so that the stock bought isn't immediately sold thereby incurring fees with no chance of gains.)

grey_gym_sock

randomness is OK within defined limits, i.e. appropriate asset allocation, no excessive exposure to anything (whether geography, sector, or individual share).

within those limits, if you churn truly randomly, the main issue is avoid letting the dealing costs become significant.

if churning is really rebalancing - i.e. it's preventing imbalances occurring in the portfolio, as a result of some investments growing whilst others fall - then it's actually beneficial.

TCA

In the thread on investment picks for 2014, natural resources/commodities gets quite a few nods, so it may pay to stick it out.

I'm currently looking at BlackRock Commodities Income Investment Trust Plc (BRCI) and BlackRock World Mining Trust (BRWM). Anybody care to offer any views on these?

The more established BRWM is about 8 times the size of BRCI and currently on a discount of about 8%. BRWM's yield is 4.67% compared to 5.67% for BRCI. There is a fair crossover in holdings like Rio Tinto and BHP Billiton and these are more concentrated in BWRM, which is 100% materials based. BRCI tends towards energy (60%), so we see US holdings in Exxon and Chevron and the likes. BRWM purchased a 2% royalty from an iron ore mine operated by London Mining, initially to 2034.

Quite a good article on BRWM from August :

http://www.whichinvestmenttrust.com/blackrock-world-mining-digs-for-income/

I have little knowledge of this sector, so would be interested to canvass some opinions.

jabbahut40

Still -45% down on my original investment over the last 6 months. Any ideas whether this fund will pickup later this year?


Thanks, Jabba

innovate

jabbahut40 wrote: »

Still -45% down on my original investment over the last 6 months. Any ideas whether this fund will pickup later this year?

I would tell you but my crystal ball got smashed to pieces the other day when my grandson took it to a five a side. Sorry dear.

lvader

jabbahut40 wrote: »

Still -45% down on my original investment over the last 6 months. Any ideas whether this fund will pickup later this year?


Thanks, Jabba

Strange, this fund is marginally up over the last 6 months.

jabbahut40

lvader wrote: »

Strange, this fund is marginally up over the last 6 months.

Agree. Its up +0.6% over 6 months which whilst marginally up is not much of a movement to me. My loses are over a longer period as I bought this fund a few years ago.

hyposmurf

I bought into this over a year ago and I'm now 2% down.Encouraging to see the improvement, looking to hold this for the long term, so theyll likely be many more ups and downs.Perhaps it's partly due to the run on copper recently.

jabbahut40

A few months on and a little better. Now -43% down but still hanging onto this one with the hope of an upturn. Anyone else in the same position?


Jabba

latecomer

I have it in my pension although not in huge amounts, I'm still contributing to it monthly as I hjave for the last 2 years. Spoke to the pension adviser last week and he still thinks this is one of the better performing funds out of that sector and we should continue with it.