China Continues to Drive Metal Demand

[JohnWood]

Iron Ore is synonymous with Aussie Dollar (commodity currency).
Currently less than 3 % of my net worth is in the paper market at any given time..Doing a little speculative trading between Aussie Dollar and Hong Kong Dollar, since Hong Kong Dollar is "officially" pegged to the USD....And if USD crashes for some reasons, I am sure Hong Kong Dollar will automatically peg to the yuan as the result..
China Continues to Drive Metal Demand
http://video.cnbc.com/gallery/?video=3000067725


Alex Latzer, Head, Metals & Mining Research, Asia (ex-Japan), Daiwa Capital Markets ,Daiwa Capital Markets says there will be more upside for metals like iron ore on China's demand growth.

[JohnWood]

I am so glad there are at least few Australians here..LOL
People frequently asked me about the relationship between Dow and Shanghai index....and Voila..Daryl Guppy of CNBC Asia Australian stock market analyst discovered that relationship back few years ago and equates Shanghai index of 3000 to that of Dow Jones 10,000. This of course holds true if the markets are not manipulated..
Daryl Guppy: China cup shows breakout target near 3,400
http://www.theedgesingapore.com/blog-heads/1094-daryl-guppy/9010-daryl-guppy-china-cup-shows-breakout-target-near-3400-.pdf


The Shanghai market behaviour is providing global market leadership. The Dow Jones Industrial Average is following the behavioural leadership of the China market. The 10,000 on the Dow is the equivalent of 3,000 for the Shanghai index. Hence one can argue Shanghai index is currently undervalued or the Dow is overvalued..