Australian Investment Blog

Over recent days, we have witnessed carnage in the commodities space, as perception increases that the current 28% decline in Chinese stocks will hinder their underlying economic growth. Overall, this makes little sense to us as Chinese stocks are still up 15% in 2015 and 69% over the last 12 months - the ASX200 would love that performance. Simply, commodities, and related currencies, are continuing with their bear markets of recent times. Overnight, Gold fell $US20, Iron Ore -5.1%, Copper -3.1%, the $A broke under 74c and Crude Oil was basically unchanged after being down over 3% at one stage. We do not think the related reource stocks have yet reached our trading buy areas, but the time is approaching fast.