NEWMONT MINING CORP

33.39 +0.75 (+2.24%) Buy

NEM continues to mint money for it's investors

13 min read

NEM ranked among the best performers today. On a longer term basis, investors in NEWMONT MINING CORP made +0.07% per day. Friday's performance of +2.24% was a outperformance compared to it's daily average.

[Themes containing NEM]

Buy-and-Hold investors in NEM experienced a maximum drawdown of -9.54% over the last three months. It delivered +12.27% during this strong bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +0.21%.

Trend

NEM has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 19 Jan, 2016 to 2 Aug, 2016. Over the last 2 years 11 months and 3 days, NEM outperformed the SP500 index on 51% days.

During the last three months NEM was mostly profitable and delivered on average +0.2% per day. It's best return during this period (of +7.07%) was on Thursday, 11 Oct, 2018. While it's worst loss in the same period (of -6.8%) was on Thursday, 25 Oct, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 12 Sep, 2018 and went on till 19 Sep, 2018. This bullish trend returned +6.24% to investors.

The last 12 months saw NEM's investors making profits in 6 months and incurring losses in 6 months. NEM was less consistent in delivering monthly returs than SP500 index. NEM was also a more risky investment than SP500 index as it's worst month in the last year, Aug 2018, returned -15.4% compared to -7.28% returned by SP500 index in Oct 2018. NEM had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from May 2018 to Sep 2018) during which period it delivered -24.44%. It is interesting to note that both NEM and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Wealth consists not in having great possessions, but in having few wants.

NEM is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in NEM's volatility from 10 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that NEM has significant positive skewness in it's return distribution. This indicates that investors can expect NEM to recover from drawdowns quickly. Which makes NEM a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in NEM derivatives at this moment can consider 'Protective Collar' options strategy to receive better risk-adjusted returns.

NEM has more chance of extreme outcomes than the SP500 index. Therefore, NEM must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than NEM.

Based on your interest in NEM you may find it interesting to know that AMZN, V and CSCO are large caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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