2016: The Year of High Turbulence & Volatility

Dear PGM Capital Blog readers,
Today, Saturday, December 31st, will be the last day of the year 2016, and what a year it was!

Looking backwards, from Brexit to Trump, and the volatility in the commodities- Forex and precious metal markets the theme of 2016 should be:

It was mildly amusing to watch the media be so sure this, or that, “couldn’t possibly happen”only to see it happen in front of our eyes.


  • The year 2016 kicked off, with the 6th Worst January for stocks ever.
  • In February, Oil prices hit a 13-year low.
  • Between February and the end of April the S&P-500 appreciated with approx. 8%
  • The summer months, was actually fairly quiet, with everyone holding their breath for the Brexit vote, which set off a two-day sell-off.
  • In November there was Trump, which triggered a rally in USA stocks as well as the US-Dollar and a sell-off in Gold and Silver.

As data driven fundamental Investor, with a strategy that fully accounts for the uncertainty and irrationality inherent in markets, the research team of PGM Capital used the volatility in the market to find those beaten down high quality securities for our client’s portfolio.

Based on this the PGM Component 50 index has appreciated with more than 23 percent in 2016 and on top of it has outperformed all mayor markets as can be seen from below chart.

We have achieved this result by shifting a portion of our portfolio under management to high quality beaten down metals and mining securities like, which has the ability to recover quickly once the market turns around.

Please receive here below the charts of the Top-6 best performing securities in 2016 in the PGM-Component 50 Index

Glencore PLC shares appreciated with 206.5% in 2016

PetroBras shares appreciated with 137.3% in 2016

Vale S.A. shares appreciated with 131.6% in 2016

Freeport McMoRan shares appreciated with 94.8% in 2016

Transocean 6.5% Coupon 2020 bond, appreciated with 50% in 2016

BHP Billiton shares appreciated with 40.3% in 2016

Looking forward into 2017, all eyes, ears and fingers (some with thumbs up… and some middle fingers at attention) will be on USA President-Elect Donald Trump.

One thing we can be sure about 2017, and that is, that it possibly can be weirder than 2016, due to this investors need to be prepared to expect the unexpected.

Last but not least we want to wish you and your love ones a Prosperous and Healthy 2017.

Until Next Time

Yours sincerely,

Suriname Times foto

Eric Panneflek

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