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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Mining sell-off provides opportunities

November 2011

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

While the FTSE-100 has fallen 12% from this year's peak many of its mining constituents are off much more, even though in several cases they've never been in a ruder state of health. Quite clearly the elephant in the room is the European debt crisis although the more relevant issue for these firms is the state of the Chinese economy. That's because the natural resources sucked in to fuel its amazing growth have meant that it now accounts for 40-50% of global demand for copper and almost 60% of global iron ore imports. Bearing this in mind, the recent move by a Chinese sovereign wealth fund to significantly increase its holding in four Chinese banks, after price falls of 30%, is basically a signal that its Government will put the f ...

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