The iron-ore led recession?

In November 2010, Intelligent Investor Share Advisor explained why iron ore prices couldn't stay high forever, listing six companies you should avoid. Since then, their share prices have collapsed along with the iron ore price. Unfortunately, this trend may well have further to go, which has huge implications for Australia’s terms of trade and the possibility of escaping a recession. For investors in Australian stocks, there is no bigger issue than this. The oversupply in the iron ore market is already substantial but will increase. Over the next 18 months between 200 and 300 million tonnes per annum in spare capacity will emerge. A...

In November 2010, Intelligent Investor Share Advisor explained why iron ore prices couldn't stay high forever, listing six companies you should avoid. Since then, their share prices have collapsed along with the iron ore price.

Unfortunately, this trend may well have further to go, which has huge implications for Australia’s terms of trade and the possibility of escaping a recession. For investors in Australian stocks, there is no bigger issue than this.

{{content.question}}

Mastercard

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

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

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

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

Please untick this box when using a public or shared device


Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access

Mastercard

Updating information

Please wait ...

Trial

Mastercard
{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership

Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles