Important to note the average length of a bear market is 289 days, or about 9.6 months (reducing) That's significantly shorter than the average length of a bull market, which is 991 days or 2.7 years (increasing). Global population nearing 8 billion (increasing), population growth requires increased productivity.
Whilst China continues to struggle with Covid outbreaks and how to deal with them, the CCP leadership cannot afford to wait for the bear cycle wheel to turn with 1.5 billion mouths to feed they will aggressively move to ensure their economy does not stall, they may fire off some shots that initially miss the mark rest assured they will continue to fire shots there is no other choice. The war in Ukraine and China’s links to Russia is also impacting on the decision making processes of Xi Jinping, be assured his patience will only hold for a little time his people have endured lockdowns and food shortages they also will demand accountability at some point.
Geopolitics has caused much of the upheaval in global supply chains again this is unsustainable, I suspect we will see leaders diplomatically move to put differences on hold. Population growth is causing untold stress on the planet turning to war is no answer but rather a concerted effort in addressing related issues would serve to improve the lot of billions of people who live in poverty and help the planet.
Life of a news cycle is fleeting equally sentiment in the stock market is quite fluent. FMG was able to make record shipments in 2022, the IO price while on decline remains significantly above cost and will serve to ensure continued FMG profitability going forward.
FMG Price at posting:
$19.16 Sentiment: None Disclosure: Held
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