I will put my neck on the chopping block, the familar story of...

I will put my neck on the chopping block, the familar story of BRIC and resources. Previous bull markets have arisen from the urbanisation/industrialisation of the US (idustrialisation) and Japan (urbanisation/industrialisation) on two separate occassions. In both cases the population driving this resource demand was less than 5% of the global population. The current urbanisation/industrialisation of BRIC economies is driven by more than 40% of the global population. That is a big force requiring a big demand. This will be generation long strong demand for resources. US may slow down but, it isn't the major player hitting at it's previous weight that it used to be.

As anyone who visits an emerging asian country will tell you the amount of construction etc. that is going on is amazing. Very few, if any people return from an asian trip without being impressed and over-whelmed by the urbanisation process. Anyone in HC-land visited china lately and been dissapointed with the level of activity?

commodity negotiators wouldn't been agreeing to 100%s increases in contracts if there wasn't an almost unquenchable demand for it. Australia is in the lucky position of being one of the worlds major resource providers.

Some hiccups on the way to take the wind out of the specu;ators sails and to unwind unsustainable leverage(betting) levels.

IMHO strong demand for longer. If you are a world class economist you don't write head-line grabbing stories for trashy newspapers to sell more copies on the weekend. You work for outrageous salaries for world-class companies, like BHP and you recommend and have to convince your superiors that it is a good idea for BHP to have a go at RIO. A clashing of titans. Not the sort of move to be taken likely without a lot of research/modelling/forecasting of the best minds out there.

So in summary resources to outshine for a longtime and that will drag a lot of others (yes even oversold finanials) along with it.

I maybe looking at the cup half full kind of view, but I probably shouldn't be drinking this early anyway and bears are just too depressing.

IMHO.

views?

choice