Far East Capital Newsletter
Trying to make sense of what is a bear market for mining
6 May 2017

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Weekly Commentary

Trying to make sense of what is a bear market for mining

Early in the week the All Ords pushed to a new high and then had its worst day in six weeks: action and reaction, perhaps. The Metals and Mining Index has confirmed a breach of the uptrend. Does this tell us that the overall Australian economy is doing well, but the mining sector is struggling to make a profit? From where I sit, neither of these suggestions are water-tight. The economy is not doing poorly, but it is not shooting the lights out. The mining sector is making good profits across many commodities, particularly gold. There is no overriding pessimism on commodity prices, so why are mining stocks so mundane at present? 

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