Well I'm back from my little break, what a month it has been,
What a shift of perspective, 2 months ago everyone was screaming China, India, Japan re-awakening, Europe Steadying, US steadying etc etc, not enough commodities, Commodity Super Cycle
Today, its like everyone has an inside scoop to Federal Reserve Bank, inflation, interest rates, slowing economies blah blah blah,
The bears are out, and the bulls are well, there in the pubs drowning their sorrows away or are they?
After spending nearly all of yesterday on the phones to brokers, the consensus is clear, most if not all brokers were struggling to keep up with commodity price rises, as such in their valuation/profit guidance targets they were using conservative loing term forecasts,
The commodities whose spots were way ahead of brokers forecasts were Copper, Zinc and to a lesser or should I say shorter lived extent Gold.
Now reporting season is at most a month away, lets see how much upside suprise comes from the earnings of stocks like
BHP, OXR, ZFX, KZL, PEM, CBH, and a whole lot more,
I also think STO, WPL, TAP, ARQ, ROC will all benefit from higher all prices, but analysts were fairly close with estimates,
Still there will be many suprises to the upside, which will result in a raft of upgrades, with brokers scrambling over each other to upgrade not wanting to be left out and the bull market for commodities and in Australia Resource Socks will really take off,
On reflection I think that this period here, is what they call 'the wall of worry' and once over its when the real bubble starts!