Idiotic equity action as iron ore sinks

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Whoa! Sometimes it really is fun watching equity mis-pricing in action. Today the major iron ore miners are up (or were) as iron ore is clearing its throat for a drop into the $50s. Go figure! FMG is demonstrating greater sanity, falling 4% back to $2. Here are the indexes:

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The FMG sanity spread is at its widest to date but the two majors have turned bonkers once more:

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.