ASX Costanza rally pushes breakouts

Thursday, 21 July 2016

The ASX Costanza rally is off to the races (which is a classic illustration of markets inability to discount political risk) . The big iron bubble pop takes a breather today though BHP is down slightly -0.05%, RIO 0.6% and FMG 0.5%:

FMG’s 58% discount dropped yesterday to 16.1% but the bubble pop remains on track:

The idiocy spread finally reversed marginally:

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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.