From Money Morning (Australia):
Investors dropped everything and stampeded out of the resource sector yesterday, reader. We mean everything. There are kitchen sinks lying all over the place. According to the Australian Financial Review, Lynas (ASX:LYC) was the best-performed miner in the top 200 yesterday. It only lost 0.4%.
So today’s issue is an idea-fest. Among the wreckage there are good stocks. Really, unless you believe there isn’t a good miner in the country, that has to be true. They all went down.
But before we get to ideas…why did the miners cop such a drilling yesterday?
Falling commodity prices. Oil’s trading at US$116 this morning. It’s leading a lot of other hard assets down. If you’re a fan of the charts, stay tuned for tomorrow’s MM. Gabriel can tell you what this plunge means for technical traders and the market’s sentiment.
Today, we have two things to say about the commodity correction.
It’s only a correction. And it’s not an all-in, broad bear market like the one you’re seeing in financials shares....MOREAnd from The Big Picture:
Tobias Merath, a commodity analyst at Credit Suisse Group, talks with Bloomberg's Bernard Lo and Haslinda Amin in Singapore about the impact of declining demand, falling prices and the global economic slowdown on commodity markets.