Yesterday’s iron ore plunge is causing some serious damage to share prices again today. Fortescue is down 4% to a 2014 low and is swiftly approaching terminal support around $3. The bizarre calm around RIO and BHP continues with both up marginally. I continue to think that both will also capitulate at some point, especially the former. It’s profits are also being destroyed even if it will be alright in the long run.
Here are the comparative performance charts:
The idiocy spreads are still widening. Although FMG will close in the next few days, the majors are headed back to record wides:
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