Nicholas Forsyth

When/or if do we get brave and buy Iron Ore stocks? The front page of the AFR is now leading with Iron Ore slump hits economy over a month after we predicted the inevitable fall in both the commodity and related stocks. Recently, the commodity hit a fresh 5-year low, leading prominent politicians to warn of an inevitable recession. John Paul Getty, the famous US Industrialist, has one simple quote that may apply to Iron Ore stocks in weeks to come: I buy when other people are selling. -J. Paul Getty So while I have been very negative the sector over recently weeks/months as the press finally get excited about the potential damage in the sector, I am turning my attention to buying areas. I am looking for triggers to buy Fortescue(FMG) with decent risk/reward. I am only considering this as a trade, not a long term investment. See (VIEW LINK)



Comments

Please sign in to comment on this wire.

James Marlay

This is a great read this morning Shawn. Everyone seems to have a position/opinion on iron ore. I like your observation regarding the front page article in the press. Interesting to see how long the pain drags out on the sector.