Yep, thanks for asking, I've read the disclaimer many times, we all get the legal justification mate. No lecture required bud, just keeping to simple facts.
Here to keep it simple for you, someone has done the work for me:
The following sourced from Marcustoday com au :
The chart below shows the very close correlation between the iron ore price and the ASX 200 (ASX: XJO) resources sector.(Charts dated 11th February 2021)
When you look at this chart you begin to realise that it really doesn’t matter what the broker analysts say, what the earnings forecasts are, what the return on equity of the Brazilian subsidiary of BHP (AXS: BHP) is or what anyone thinks.
When you are trying to decide whether to be in the resources sector or not it is all about guessing what the underlying commodity prices are going to do next.BHP, Rio Tinto (ASX: RIO) and Fortescue Metals (ASX: FMG) can look cheap or expensive, but it really doesn’t matter, their share prices are inextricably tied to commodity prices and in particular, the iron ore price.
HIO Price at posting:
10.3¢ Sentiment: Buy Disclosure: Held
