Does Fortescue mine virus cures?

Wednesday, 22 January 2020

Sure looks like it:

I’ve so far been wrong on the stock but the iron ore outlook is not improving as FMG reaches for the stars, up 3% today:

58% is already heavily discounting;
the base case is the three majors are returning 40-50mt this year;
Chinese property is slowing;
Coronavirus! A SARS-like shock will crush iron ore for six months.

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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.