The Daily Reckoning Market is Reading Too Much Into IBM’s...

The Daily Reckoning
Market is Reading Too Much Into IBM’s Positive Result
Posted by Dan Denning on Jan 15th, 2008



The financial economy may be careening around like a drunk businessmen at a trade show, but it doesn’t seem to be slowing down iron ore. “Expectations of higher benchmark iron ore prices are rising with the rumour that Brazilian mining giant Vale has pitched a massive 70% price increase at Chinese negotiators.”
This would be welcome news for Aussie ore juniors. The juniors, like everything else in the market, have been smacked down hard in the last month. But a rise in the ore price of that magnitude would seem to confirm that the building and infrastructure boom in China will continue for at least 2008-even if the stock market struggles.
“Such a rise would replicate the 71.5 per cent rise in 2005-06 when the market was caught short by iron ore suppliers badly underestimating the extent of China’s soaring steel production and consequent iron ore demand.” Today’s iron ore price is both demand driven and supply driven. But it’s mostly history driven. China’s industrializing. The process takes years…and lots of ore.

The rest of the story was about IBM didnt real relate to us. But to see it
http://www.dailyreckoning.com.au/ibm/2008/01/15/#more-1886

Cheers all