Thorny, why is "cheap" being associated to bottoms. Have a look...

Thorny, why is "cheap" being associated to bottoms. Have a look at the goldies and you can probably see that picking the bottom of once high flyers would have entail massive DD if haven't sold with no sign of "bottom" in sight. I am not patronising anyone here and have been guilty myself of hanging on to some stocks when the head is saying constructively I should have got out a long time ago.

I was thinking of price drivers and here are some I thought could open up discussion as to why I still don't see any light in this dark tunnel yet.

China's real estate in the major cities are majority cooling
Economy now focus on domestic consumer demand rather than fix asset investments
Their major trading partners or zones are themselves having economic difficulties ie EU Japan BRIC
US economy is an interesting one as by measuring the stock market is booming but using inflation is barely growing. US is the chief price driver or the trickle effect for the rest of the world.
GOLD/Oil is a crude direct measure of the world growth ie no inflation or contracting

Now for the positives;
China can crank up another round of macro stimulus
Float their currency
Follow all other CB and QE
Currency war instigated by Japan last Friday

As far as I can see the future and it is by no means clear but I don't see any price drivers for IO big demand and all the positives I have listed personally are merely hopes rather than facts. Meantime BHP will unleash another 70MT of excess high grade ores to the market and by this time next year Roy Hill will add another 50MT when they get into the swing of things.

If you are a marginal player generally speaking then time is not on your hand besides hoping for a drop in AUD to blunt than bearish IO spot. If there are debt that need servicing even if it is not due for payment then there is a further risk to continue poor performance.

I just can't see buying in on any junior with cheapness in mind mitigate the risk and stacking the odds in my favor. Good luck holders and I am glad for once I practice common sense instead of outright greed and optimism.