You seem very good on the timing front and that is all that matters. The IOP is coming off a very frothy level 2nd qtr of this year so it is always difficult to tell if this is the pullback that had to happen or we are about to experience the 2014-16 bear market which is still very fresh in my mind as a cautionary note to myself.
In march sell off, I decided to take RIO just based on its diversity thinking it has a bit more defensive feature aware that the move in % would be less than FMG which has a higher beta. I had to swing trade it because I wanted exposure but was really unsure how the Chinese authorities would try to control IOP! I suppose in hindsight, that trade would have given me the added bonus of a much more handsome dividend but that is usually the last thing I aim for in a resource stock.
A2m is another classic late to the party and late in leaving for me. One of those I should have, could have situations where turning a handsome gain to a bigger loss relative to the gain does leave a bitter taste sometimes of not aiming for "not losing money" sentiment first! Now I find myself picking the bottoms and exiting with some form of gain which in theory does not make the risk worthwhile experience.
How do you see the all the moving parts in the IO supply fundamentals? I read somewhere that current situation is partly due to Vale ramping up supply after recovering from the Covid infections to their employees.
FMG Price at posting:
$19.74 Sentiment: None Disclosure: Not Held
(20min delay)