BHP Group vs Anglo American Plc
BHP vs AGL - two shares and comments I'm publishing from a discussion we were having yesterday.
The following comments are in the context of a long-term portfolio. There are 3 more comparative charts that go along with this discussion, but for the sake of simplicity (and clients), I'll keep it at the main chart.
On a relative basis, AGL is nearing long term technical resistance vs BHP, that being the downward trend line extending back to June 2003 and the swing high of January 2007.
Also, from the resource sector low of January-2016, AGL has outperformed BHP by around 340%.
Reviewing the individual performance, the following is noted:
BHP's peak prior to the Jan-2016 lows occurred in August 2014, which I am using as a reference point. From then to Jan-2016, BHP declined by ~63%, while AGL fell by ~82%.
While both declines were similar in % terms, AGL has recovered by ~1280%, while BHP has only recovered by ~268% from the January 2016 lows.
Based on the chart which highlights the pending resistance, the technical case would look to buy BHP and sell AGL as a catch-up investment/trade within a long-term portfolio.
*Know Your Time Horizon and Manage Your Own Risk*
The following comments are in the context of a long-term portfolio. There are 3 more comparative charts that go along with this discussion, but for the sake of simplicity (and clients), I'll keep it at the main chart.
On a relative basis, AGL is nearing long term technical resistance vs BHP, that being the downward trend line extending back to June 2003 and the swing high of January 2007.
Also, from the resource sector low of January-2016, AGL has outperformed BHP by around 340%.
Reviewing the individual performance, the following is noted:
BHP's peak prior to the Jan-2016 lows occurred in August 2014, which I am using as a reference point. From then to Jan-2016, BHP declined by ~63%, while AGL fell by ~82%.
While both declines were similar in % terms, AGL has recovered by ~1280%, while BHP has only recovered by ~268% from the January 2016 lows.
Based on the chart which highlights the pending resistance, the technical case would look to buy BHP and sell AGL as a catch-up investment/trade within a long-term portfolio.
*Know Your Time Horizon and Manage Your Own Risk*
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