Tuesday, February 4, 2014


Can't believe how frickin' busy I am at work.

Anyway, here's a thing I thought of last night:

Nice of you to come back from the brink, Alex, but your stock's chart has done nothing for a couple weeks now. It's not broken yet but it still isn't inspirational.

Then again, maybe Rio Alto's price has only hit a wall because Peru is down 10% (it being an emerging market and all) and Rio Alto is listed on the BVL.

OK, it outperformed Peru since mid-December, and now for the past couple weeks it's just been doing whatever Peru is doing.

I'm not worried anymore.


  1. The problem with this theory: On Jan2nd the BVL changed the make-up of the IGBVL index (which EPU tracks faithfully, as it's basically a proxy on the BVL index that's easily traded abroad). Previously mining companies made up the majority of total weighting, but now it's down to just over 33% http://www.bvl.com.pe/estadist/mercindicesmercado.html .

    Or in other words, in its infinite wisdom the BVL decided to dump its mining component just after having it sink its market in 2013 (Peru was the world's worst performing stock mkt in 2013, as in the WORLD) and just before the recent rebound that would have made things much prettier. It preferred to add a bunch of banks, food companies etc.

    In short, EPU doesn't reflect mining companies anywhere near as much as it used to, hence the divergence you picked up on in the charts.

  2. http://incakolanews.blogspot.com/2014/02/the-chart-is-chart.html