The liquidation of the short-dollar/long-commodity trade raises a simple question: what’s going to lead the market when it turns up next? Typically, the sector that led the last bull market hardly ever leads the next one. There are lots of reasons for this. But the simple one is that conditions for expanding earnings are never as good as they are when things are as good as they’ve ever been (as they tend to be at the height of a boom.) Financials have been pounded harder than resources.
August 19th, 2008 | Dan Denning | 2 comments | ContinuedAll Posts Tagged With: "aussie resources"
The Market Price for the Resources China Wants is Rising
Who is the predator and who is the prey? That is what we wonder today. Is China preying on BHP Billiton (ASX: BHP)? Or is BHP preying on Rio? Who are the barracudas and who are the minnows? First, the big fish. “With iron ore prices rising explosively,” says China’s National Development Reform Commission (NDRC), “many domestic firms are very enthusiastic about investing in overseas mines, which needs strengthened macro guidance from the country.”
April 17th, 2008 | Dan Denning | 5 comments | Continued