fe price stabe and lower aud., page-3

on my numbers the big fe pure plays are trading at nearly 50% discount to spot npv. that said, the fe forward curve drops off in a couple yrs and analyst community have long term prices significantly lower than spot

but stocks (across all commodities) are pricing in a significant drop offs in Chinese demand. no-one knows if that prediction will turn out to be right of course, but there is a big disconnect opening up.

big picture, while there are obvious big global growth risks, it's also obvious that that risk is being front run by a massive EM/global-growth sell positioning, but, the bigger the disconnect gets, the bigger the buy opportunity if the stockmarket gets it wrong

(incidently, IMHO, I really didn't think the PMI out of china yesterday deserved such a huge sell global sell, it was a tiny tick down, not a fall away)