"The spec side is finished imo, commodity prices wont pick up for a time"
Some charts to put things into perspective
Oil 10yr chart $20/bl to $100/bl gee what a crash
Iron Ore & Coal sorry they are out of date but you get the point
Copper might not be at highs but certainly not at lows
Gold might be off from highs but again look at the big picture
Now look at the following 2 charts
XMM Metals and Mining Index
Gold index
XSR chart which i couldnt get shows we are below GFC lows too and back to 2003 levels I think
You know what I see? 2 things
First we are seeing a massive divergence between the pricing and value given to resource companies and the prices of the actual underlying commodities
Second its clear that what drives the pricing of stocks especially the spec end is sentiment not fundamentals
At some point this irrational exuberance towards dividend stocks in the chase for safety and yield will end and the negativity towards resources will turn.
Anyone who thinks this sell off has been based on or justified by fundamentals is nuts
- Forums
- Breaking News
- australian investors wiped out
australian investors wiped out, page-31
-
- There are more pages in this discussion • 36 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)