Iron ore a possible bubble

Discussion in 'Stocks' started by m22au, Oct 31, 2012.

  1. m22au


    I've covered this briefly in my journal, but I think the idea is worthy of a separate thread.

    "David Einhorn Is Shorting Iron Ore"

    "Einhorn calls iron ore a ‘bubble’: report"

    "How business decisions are made in a boom: Fortescue Metals edition" (Monday, June 4, 2012)

    If Einhorn's prediction of $80 came true, then this would mean massive declines in share prices of the relevant stocks, and even some bankruptcies (eg. see Bronte Capital article above).

    Industries to consider:

    iron ore (eg. Fortescue)
    steel (eg. AKS)
    coal (eg. JRCC ANR ACI)