If one values safety, put your money in a bank TD (guaranteed by...

If one values safety, put your money in a bank TD (guaranteed by the government). If the EU scuttle the RIO/BHP IO JV, do you think BHP SP won't take a beating ?

I speak with respect to the future (not the past). For anyone buying assets (any asset class) at the peak of the cycle, one is a fool. whether it's RIO at $150 or FMG at $13.

The difference here was that FMG hit $13 (albeit with a bit of froth) when the maiden barge left Port Headland. FMG as just a minnow literally with the 1st capsize steaming off to China. This is what I call UPSIDE potential. It is on the path to becoming a 200MTA producer (at today's BHP production level).

When BHP rebounded from $20 to now $43. Just about every pilbara, mid-west and South Australian IO junior has gone up anywhere from 300% to 1000%. AND THIS IS JUST THE BEGINNING. BHP will be left behind so badly, it's not funny. RIO will do much better IMO.

Once 3rd part rail access opens up, an avalanche of BHP/RIO money will flood into the juniors negating any benefit of the BHP/RIO IO JV on their share prices.

The GFC happens once in a life time. Chance are nobody will see anything of that magnitude ever again. That's not to say we won't get some shocks from time to time (natural occurrences of the economic and asset cycle).

For instance if China suffers a massive asset price bubble bursting. Any resource shares whether it's BHP, RIO, Xstrata, Fortescue or Anglo American will be affected. But then again, this in my view will only be a short term setback in what will be a very long term commodity boom as China's industrialization and urbanization is still in the early stage.