Hi FMGers,Considering how steeply many many commodity stocks...

Hi FMGers,

Considering how steeply many many commodity stocks have been battered since towards end of february and then gold if you look at the numbers it is quite staggering...

First it was Iron ore.. Then it was copper... then it was China was 'cooling'.. then it was no more QE.. then it was cyprus..then it was gold..

I know, i know, the market is always right blah blah. But it is a bit scary to think that stocks can lose up to 50% of their value in a couple of month based on things like:

> China having a growth value of 0.2% less than the forecast ??
> IO prices to be $4.00 less than forecast

etc etc..

I think in the world of HFT, massive 'short only' hedge funds and rampant downramping by the likes of goldfilled sachs, it is a lot harder for us poor investors to keep up.

The funds needed a new 'play, a new 'trade' and given the banks were 'maxxing out', they thought, hey lets hammer the miners..

'the boom is over', 'there is too much supply', 'QE is about to end'.

Wait a sec.. if QE is about to end because america is recovering, then that recovery will be supported by China making more and more of their stuff... so China will keep growing at a healthy rate.. and therefore, NO, the mining industry is not magically dead.. duh!

BUT!!

Just like all the banks that were about to foreclose and die, but somehow bounced back from the GFC (for no particular reason) and are now the 'high yield' darlings that keep getting spruiked, the miners WILL recover from this...

The thing that really (unfairly) hurts FMGs share price is no dividend.. Yes, it may not look good on the balance sheet if you need to borrow to pay a dividend, but it seems the market punishes you for being economically responsible...

Hang in there.. and GL holders!!