by Chris Becker
When the crowd turns, get out of the way – or better yet – be prepared in advance. Last time I was here regularly at MB I considered short AUD (against pretty much everything, even NZD) to be not just a sensible hedge, but for me at least, a prudent long term investment.
The fortunes of this economy are tied irrevocably to that of China – which means commodities, which means iron ore and coal. The simple dynamic between a burgeoning seaborne supply of iron ore (from everywhere) and a peak in demand at the end of a price bubble spelled an inevitable collapse.