Cash in while the going is good! It won’t last… | Australian Markets

They say you possibly can’t print money. But some people can. It comes by way of the corporations they constructed.

One of these is Andrew Forrest. His large child Fortescue Metals ($FMG) simply introduced their quarterly outcomes. Net money on the books went up by US$1 billion.

Iron is simply so darn profitable for the large three. And this is with a ‘bad’ iron ore price.

FMG is guiding an increase in volumes for the subsequent 12 months too. The iron ore price solely wants to carry for the money to keep spewing out of Western Australia.

Again, we keep coming back to the similar level.

There are large quantities of money flowing by way of Australian commodity corporations. And but no one actually perceives it this fashion.

Australia is, in truth, spoilt. We take it with no consideration actually.

Iron ore won’t all the time keep this high, and definitely for as long because it has over the final 20 years or so.

Commodity booms simply don’t final endlessly. No increase lasts endlessly!

That’s why you and I need to boogie while the music is nonetheless on.

Think of all the retirees on the market now residing off dividends out of WA filth and the Oz banking system.

Maybe you’re one of them.

If historical past teaches us something, it’s that the world modifications, and markets transfer on.

At some level Australia’s two-trick market is going to stop being the money cow it’s been for thus long.

I don’t know when the date comes. But I’m attempting to make hay while the going is good.

We can say one thing about Trump at this level. I believe most of his insurance policies are misguided.

But at the least he has insurance policies to reshape the US industrial place and financial system and places them underneath the stress cooker of public opinion and the political course of.

What precisely is Australia’s authorities doing right here?

It appears to me we simply keep coasting off strikes made in Beijing and Washington.

High commodity costs make this passive strategy appear to be it really works.

What is the plan if iron ore goes to US$30 per tonne?

Of course, there is no plan.

Look at oil producing international locations.

They increase for a while when the going is good, then the oil royalties and revenues wither away, and there’s nothing to backstop the nation.

Even Saudi Arabia sees the insanity of this and is now utilizing oil riches to diversify its financial system.

Australia lives off coal, fuel and iron ore exports. All of them are underneath risk long time period.

All this is a fear for one more day.

Right now it seems to be like commodities are rumbling, and busting to interrupt out.

I’m seeing upward stress in iron ore, gold, tin, uncommon earths, silver and lithium.

I mentioned at the high that some people look like they’ll print money.

Governments really can print money, and each the US and China are juicing markets with stimulus.

They’re not broadcasting it as a matter of “open mouth” financial coverage.

But it’s taking place all the similar. It’s why bitcoin and shares are at file highs.

This money is leaking into the markets.

Commodities rumbling is additional proof.

My earnest advice is to strap your self on to the freight prepare while it’s transferring.

There will come a time when all all of it involves a halt. That will probably be a grisly time.

Right now, the going is good. Make the most of it.

Best needs,

Callum Newman,
Editor, Small-Cap Systems and Australian Small-Cap Investigator

Yesterday I mentioned the chance of the US Dollar getting hammered if latest lows can’t maintain.

The corollary of that may very well be a rising Aussie greenback and the indicators are there that a sharp rally in direction of 68 cents is on the playing cards.

Last month noticed a month-to-month buy pivot confirmed from a main buy zone.

The month closed above the 20-month transferring average for the first time since September 2024.

The MACD has kicked into constructive momentum, with the remaining piece of the jigsaw a shift into long-term uptrend which is getting close.

The midpoint of the vary from the previous seven years sits at 68.3 cents and is often a magnet for price motion.

If the US Dollar Index [TVC:DXY] tumbles as anticipated beneath 96.37 I anticipate to see the Aussie greenback race in direction of the goal at 68.3 cents.

Regards,

Murray Dawes,
Editor, Retirement Trader

All advice is common advice and has not taken into consideration your personal circumstances.

Please search unbiased financial advice concerning your own scenario, or if in doubt about the suitability of an investment.

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