commodity prices were strong, low debt, and higher payout than...

commodity prices were strong, low debt, and higher payout than BHP. The issue is the outlook is negative hence the share price and negative commentary on China from Rio. I’ve added some huge positions here and in BHP on this weakness by selling a large amount of bank shares that in my view completely overvalued. The valuations there vs materials are compelling to pile into BHP and RIO in my view.

i still think China will come through with meaningful stimulus, it’s just when. I wouldn’t be adding tier 2 miners with poor leveraged balance sheets in this environment. But thankfully this and BHP are like a fortress balance sheet thanks to the boom paying down debt of the past. The other factor not so dependent on China is copper. We had a sneak peak at it shortly, I suspect it’ll be much higher than $5 soon.