Zendiceman, I agree with the commodity / inflation argument and I think there's another factor that comes into play. We're going through a change in asset / income change. We've had massive asset price increases since 2000 when they started the whole MMT process and low interest rates increased asset prices but suppressed wages. The rich got richer and the rest stagnated. Just ten years ago being a billionaire was cool, but the zeitgeist has changed and the world is viewing conspicuous wealth as a negative thing. The politics are shifting to the left and we will see far more distribution such as happened in the 70's. We then had inflation, higher wages and high commodity prices.
Put simply if you give a hundred low wage earners $1000 each they spend it and demand for commodities goes up, you give the same $100 000 to Bill Gates and it creates almost no demand for goods.
On top of this you have massive infrastructure projects and decarbonisation and the demand increases even more.
Put these together and the whole market will have a good decade in my mind. FMG and FFI are very well positioned for all of this, if they could add some copper into the mix with some of the exploration stuff and its even better.
So, whilst the short term will fluctuate (think Winter Olympics and other stuff), if you have a 5 year outlook and like some dividends on the way I struggle to see a better investment than FMG.
FMG Price at posting:
$19.14 Sentiment: Buy Disclosure: Held
(20min delay)