(or kilometre – depending on which measurement system you prefer) wide. It’s the gap between a favourable macroeconomic trend and a company’s stock price movement. Suppose you could go back in time to 31 January 2006, when gold was trading at US$569 per ounce. You have an accurate crystal ball and you know the price of gold would more than triple to reach US$1,900 per ounce over the next five years. Would you have wanted to invest in Newmont Corporation, one of the largest gold producing companies in the world, on 31 January 2006? If you said yes, you would have made a small loss on your Newmont investment, according to O’Higgins Asset Management. Newmont’s experience of having its stock price not perform well even in the face of a highly favourable macroeconomic trend (the tripling in the price of gold) is not an isolated incident. It can be seen even in an entire country’s stock market....