not looking good for juniors

  1. 2,499 Posts.
    Even before the subprime crisis surfaced, Kerr Neilson was saying there's an "overinvestment" in iron ore production.

    Now that you add one of the worst financial crises the world has seen on top of it, IMHO it definitely doesn't look good for iron ore hopefuls.

    Leave emotion out of it,20867,21632020-5001942,00.html

    May 02, 2007

    "Understanding the psychology of the investor versus the crowd is paramount to understanding markets, Platinum Asset Management managing director Kerr Neilson says. "We anchor and frame ourselves in the past, so we underestimate what can be. When the price of oil goes through the roof, we cannot imagine it back again at $US16-17 per barrel. That led to the current underinvestment in resources. Now the boom in metal prices is leading to overinvestment, such as in iron ore production."

    Investors may create bubble in oil, metals
    By Andrew Trounson
    The Australian
    March 07, 2008 09:20am
    "Two weeks ago, the founder of Platinum Asset Management Kerr Neilson told The Australian that mineral prices were ``simply far too high'.

    "Take iron ore, for example, which has been ramped to ridiculous price levels. The clowns are taking over and there will be an awakening one day,'' he said. "
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