In the past few days we’ve witnessed another in a long line of broker blunders on iron ore as Rio Tinto has been uplifted by an upgrade from BofAML. Below find a new article composed for Intelligent Investor and published today arguing exactly the opposite.
Iron ore and miners are buggered
As the primary driver of a 150-year boom in its terms of trade, iron ore has been good to Australia, the central pillar of our contemporary prosperity in fact. Once again, we got lucky, this time with unique convergence of three cycles: Chinese catch-up growth and urbanisation; an unprecedented steel boom; and a massive supply expansion.
