There's been a lot of comment on HC about how cheap Oxiana/OZ...

There's been a lot of comment on HC about how cheap Oxiana/OZ is. At a PE of 7 I don't think it is relative to the market. The banks are trading on PE of about 9 but pay superior dividends. A previous writer on this thread said BHP's forward PE is about 7. The best thing that can happen for the Australian market IMHO paradoxically is a (modest) fall in commodity prices. That will take inflation out of the world economy and slow the Australian economy. If the Australian economy slows that will bring down interest rates forcing billions of dollars out of cash and into the market. At that point PE's will start to trade in their normal range (about 14) prompting a massive spike in the market. Until there is at least a perception that interest rates are coming down, there will be too much money staying in cash to bring about sustained buying support. I know I wish I'd taken the 8% cash over the past 8 months rather than getting hammered in the market.