The capitulation of RIO

Friday, 4 December 2015

Recently I wrote a post RIO ripe for ruin in which I mused that the second of the big miners was about to crash lower. Today we seem to have begun the de-rating in earnest as RIO moves into free fall, down -3% to a post-GFC low.

It’s no wonder. Consensus is miles behind the profits reality now:

As iron ore margins collapse:

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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.