The big question for mining and other commodity stocks is as to whether the BRIC's and parts of Asia slow down more than anticipated. Currently, the thinking is that they will but for only a brief period such as 1 year.
The worst case is thatb they slow down and go into a protracted recession. That is not widely belived in at this moment. That's what gives me pause on buying anything. World growth has been funded by bad debt and cheap money. That has to be reconcilled going forward. We are not there yet.
How Low Can Mining Stocks Go? [View article]
The worst case is thatb they slow down and go into a protracted recession. That is not widely belived in at this moment. That's what gives me pause on buying anything. World growth has been funded by bad debt and cheap money. That has to be reconcilled going forward. We are not there yet.