"The spec side is finished imo, commodity prices wont pick up...

"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Iron Ore & Coal sorry they are out of date but you get the point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