Fidelity Worldwide Investments is taking a contrarian view on iron ore anticipating US growth will offset swelling supply volumes

Fidelity Worldwide Investments is taking a contrarian view on iron ore anticipating US growth will offset swelling supply volumes. Andrew Wells, one of two global co-chief investment officers for Fidelity Worldwide is tipping a bigger than expected pick-up in US growth that will offset the slower growth in China and soften the impact on the iron ore price of increased production. The consensus view is that Australia's biggest export is going to keep coming under increasing pressure from increased global supply at a time when demand growth from China is slowing down. We expect a stronger than forecast improvement in US GDP growth that will be very supportive for bulk commodity prices, he said. Increased stimulus from the Chinese government is another likely factor that could also help buoy iron ore. Full article available via the AFR here: (VIEW LINK)