Morning Report Tuesday 12 January 2016
Over recent months the financial press has been full of stories covering the collapse of commodities and associated resource stocks e.g. Iron Ore is down 75% since mid 2012 to $US41.3/t - see chart 1.
The headlines make dramatic and painful reading for many local investors, over the last 12 months we have witnessed Woodside -24%, BHP -42%, RIO -31%, and Fortescue -39%.
However these declines have not been surprising to Market Matters who forcasted BHP at $20 when it was over $30 and were almost laughed at by many !
In our 2015 Market Outlook we stated "in terms of commodities - we are still staying away from this space" - 2016 Outlook Report coming soon.
Last year Market Matters had some overall success trading in resource stocks specifically wins in FMG and WPL and a loss in Santos (STO) but we got a slap from the market for buying BHP too early.
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