Big investment banks and hedge funds have been globally shorting...

Big investment banks and hedge funds have been globally shorting various parts of the mining sector since late February.

This only became apparent to us LT FMG holders much later..

For people who had access to information that this is exactly what the hedge funds were doing, they could comfortably short the likes of FMG which was a darling of the 'Short fraternity' calling it a 'value trap' and picking it for special attention due to its debt profile.

FMG management are acutely aware of this and therefore had no choice but to plan to reduce debt to take that risk factor away.

So for the likes of the guys who get on here and say '$3 soon' and '$2 next' yes they were close, but not because they had some special insight into the resources sector or FMG in particular.

The funds and banks chose to sting the miners and of course backed this up with stories, reports and analysis about China and Growth etc etc etc.

Isnt it funny if growth is in doubt that the DOW keeps setting new records ??

So you will never get a good answer as to why these smart alecs are shorting FMG except, that they 'knew' the big funds were shorting it, so hey lets ride it with them...

Yes, its a good strategy if you have tight stops, but only if you have enough people to give you that info in a timely manner.

This is something the average retail investor simply does not have access to..