Australian Investment Blog

Oil joins the Iron Ore & Copper “Bear Party”

Occasionally I have to reiterate a point that we believe strongly in, before people take notice. I continually hear people trying to pick the bottom of the Iron Ore market, but they forget that it’s still trading 500% above where it was in 2003. Hence, when I say predicting the price of Iron Ore is extremely difficult, but it may still halve to only up 250% in 11 years, it’s hardly that bearish. Let’s consider BHP’s breakdown of earnings estimated for 2015 in order of importance:

Iron Ore (36%) – Hard to predict, but I can easily see further downward pressure as the Chinese economy slows to normal levels.