Possibly steeling myself

Readers may have picked up that I’m favouring the equity of cyclicals, industrials and businesses which are ‘asset-heavy’.

Steel is one of them….I’m conscious that I’m possibly late to the party (I didn’t see this move coming) as you can see (in the chart below) by the mesmerising quadrupling of the price in Hot Rolled Coil (HRC) Steel.

When I overlay a stock such as Hong Kong listed, Angang Steel, which is traditionally well correlated to the HRC price, it’s recent divergence from this ‘marriage’ is making me think if there is an investing opportunity…..but I haven’t got an opinion yet.

More work needs to be done but just sharing what is crossing my mind.

July 22, 2021

by Rob Zdravevski

rob@karriasset.com.au

One Response to Possibly steeling myself

  1. beachmark says:

    Not welded to anything yet…?

    mark mcmanus beachmark photography

    0447944496 beachmark@westnet.com.au http://www.beachmarkphotography.com.au

    >

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: