International Women's Day - Tuesday, page-11

Last night I heard some market commentator say that the rally in resources is due to expectations that the Chinese government is about to again stimulate their economy and increase demand for resources.

If you believe that you would believe anything. The real truth is China is running out of money fast and has to cut spending. Why else would China be cutting 1.8 million jobs from steel and coal and with more cuts to come from other sectors? That does not seem like stimulus to me.

With such massive cutbacks planned in steel production, won't that make the iron ore glut worse? So why did iron ore rally 18% overnight? The only explanation I can come up with is it is a pump job done by those who are overexposed to resources and want out. Good luck to them, they will need it.