RE: Dividend25 Sep 2019 09:56
The last five years have been challenging for the share prices of Glencore PLC (LON:GLEN) (GLEN.L) and Tullow Oil plc (LON:TLW) (TLW.L). The two resources stocks have posted declines of 23% and 68% respectively during that time, with investors adopting a cautious stance towards them.
In my opinion, further volatility could be ahead for both companies. In Glencore’s case, it faces an uncertain economic outlook, with China’s GDP growth rate potentially being hurt by the trade war in which it is engaged with the US.
This could have a knock-on effect on the company’s financial prospects at a time when it has faced regulatory risks, as well as while it is in the process of implementing changes to its business model.