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Big iron pretends it can fly

Tuesday, 24 May 2016

Ah big iron. The glass is always half full until it isn’t. Dalian is down another percent from its overnight hit signaling another solid fall tomorrow but big iron is up because it sells…what…potato chips? BHP is 0.9%, RIO is 0.8% and FMG is -0.7%:

I can only say, once again, that this is completely deluded, that the bear market is going to roar again in H2 if not before, and that that should excite anyone looking for market mis-pricing.

Big gas is a bit more sober with oil looking weak as WPL falls -0.9%, OSH -1.82, STO and ORG flat:

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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.