A pause that refreshes , or beware the 'ides of march'?
I vote for the former.
US interest rate hike will be reviewed ad nauseum-with the reality of slowing ,(as opposed to stopping!), US growth.
The Chinese want to slow the import rate of iron-not stop it, (they have buckleys chance of even slowing it in the short term to be realistic!), whilst the Indians absorb more by the minute regardless.
There is no obvious deliveries coming into the LME warehouses-metal demand remains strong with little scope for significant supply increases outside of what already is factored in.
The weakening of the A$ today has actually seen a rise in the A$ price of key commodities.
On the industrial side, prices appear to supported by earnings with the dividend ratios coupled with retained earnings still competitive with bonds.
It might have the impact of clearing out the 'could've been champions' in the junior resource sector-but so many have market capitalisations that have no fundamental reason for the levels they are trading at. (Note to self-abuse more chartists tomorrow when appropriate!LOL)
No, not in the Christopher Robin club at the moment. Just another opportunity to buy good quality shares, and maybe see if any decent juniors get corrected too far-if at all! (Still not a goldbug however-there could be more of a shakeout later in the year when the market wakes up to the fact that most operators are marginal at best in the current climate).
" Big Julie, don't go, I told him, big Julie don't go." Apologies to Wayne and Schuster(?)LOL. Wish I knew how madmacs posts the music! "Always look on the bright side of life........"
