1. Many expert finance commentators have recently been stating...

1. Many expert finance commentators have recently been stating that US inflation is now within acceptable parameters (but not in Australia); & they therefore state, also, a US rate cut will probably occur in the next few months.

Cuts in US rates usually bode well for the US sharemarkets- & the ASX often follows general market trends in US sharemarkets.

Well known MSM commentator (& Funds manager), Marcus Padley echoed the interest rate cut narrative on 2.9.24, when he said

"The US PCEprice index numbers came in slightly below expectations (good) on Fridaynight, which was a hurdle crossed as the inflation trajectory continues towardstarget. The numbers confirm the "inflation has been conquered"assumption from Powell's Jackson Hole speech last weekend. Steady as she goesahead of the Fed meeting on 18 September...

Resources areflat on their backs and trying to rally, but I can'tget involved in oversold rallies unless there is a genuine macro catalystbehind it (China's economic resurrection, for instance - which is nothappening). Without that, they are just fleeting speculative, baseless rallies,as we've seen in uranium and lithium recently.

Out of all thesectors, resources is the sector to watch. It is the ONLY (my emphasis) sectoroffering a "buy at the bottom" opportunity rather than a "buy atthe top" one" ".


(Whilst it is true that China's economic slowdown indicates that it will probably not be importing coal in large quantities over the next 12 months, world demand, excluding EU & USA, for coal- both met & thermal, has been rising.

IMO, it is reasonable to expect met & thermal coal prices, notwithstanding China's sluggish economy, will also rise in the next few months.. All my words in brackets).
I also agree with the 19.8.24 prescient comments of@ShareJagger, re 17mt pa of met coal supply that has been recently removed, when he said

"Yes, I'm startled that the coking coal price has gone down.
I heard somewhere that the [Grosvenor] fire was extinguished but that could still mean that mine is out for 2 year or forever? Nobody knows. 3.5Mt
Same for the USA longwall mine. 3.5 Mt
BHP reported reduction of 10Mt from Central Qld while they catch up on stripping that they seem to have made a major blunder.
17 Million tonnes out of the market.
I thought that panic merchants would have pushed price towards US$400.
However the market believes Chinese propaganda of a slow down while {China is] increasing coal imports July 2024".








2. Michael Slack, Head of Research at global active equity specialist Martin Currie 27.8.24 also said (to a livewiremarkets C. Capolingua question)

"From 1-5, where 1 is cheap and 5 is expensive, how much value are you seeing in the market right now?"

"Rating = 4

I would go a 4...

As for cheap sectors, the energy (Includes thermal coal. My words, & emphasis) sector, coincidentally. We think it is undervalued... To be honest, there’s not much more out there looking very cheap".

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