From Fairfax:
Commodity prices have bottomed in Australian dollar terms, and mining stocks are cheap, providing an ideal opportunity to buy, fund manager Charlie Aitken says.
The macro-themes of China and the Fed have overshadowed the fact that key commodity prices have been steadily rising, the former stockbroker and founder of Aitken Investment Management said.
“No one’s mentioned in the last month that iron ore’s actually gone up, oil prices have gone up, the Australian dollar has come down, so Australian dollar commodity prices have actually bottomed in my view,” Mr Aitken said in a television interview this week.
“I don’t think I’m going to get instant gratification from BHP or Rio, but if I look at it, I think there’s value there,” he said.“They may not produce me much return in the short term, but they’re cheap; they’re half the price they used to be.”
And twice the price they’re going to be. Charlie has been telling us to buy miners non-stop since the peak and decline of 2011. He does not get that this is an historic bear market.
