Commodity slump: Not bad news for everyone

As resource industries start to feel the pinch of lower prices, a lower dollar softens the blow ... especially for the best companies.

Summary: The falling oil price is likely to weigh on LNG profits, while iron ore is likely to stay in a bear market for some time, meaning tax revenue from resources is set to fall. But a rise in US interest rates will push the Australian dollar lower and cushion the blow of the fall in mining revenue. Salaries are increasing at a lower rate as companies look harder at productivity.

Key take out: Companies that will do well in this environment are those that begin to devote more time to strategic long-term growth decisions.

Key beneficiaries: General Investors. Category: Economics and investment strategy.


SMS Code Sent…

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Log in to access this content

Looks you are already a member. Please enter your password to proceed

Hi {{ user.FirstName }}

Verify your mobile number to unlock a FREE trial

Looks like you've already taken a free trial

Please sign up for full access

Updating information

Please wait ...

Related Articles