It doesn’t take Einstein to see that the current rally in iron ore miners is a fantastic shorting opportunity. Whether now is moment very much depends upon your strategy and time frames. For instance, if you’re borrowing stock to short FMG then it’s going to cost you simply because it’s in short supply. If you’re using CFDs then that’s no problem.
I do not see the either the current flush in global or Chinese growth as an impediment to a short. My feeling is that the iron ore rally is not yet done but it’s still miles above where it’s going to be next year so that probably adds up to now is as good as any time.
For further interesting detail on the state of shorting iron ore miners, find below the latest from MB’s favourite analyst, Damien Klassen at Wilson HTM.
