Stocks sold off across Asia with no exception. It seems to me that many are pricing in a significant Chinese slowdown. Last September, I said that the US was speeding up and not going into recession (at the time when 8900 economists were predicting a recession). Every bit of economic data indicated otherwise to me.
It's the same with China. They have 2-3 trillion options.
Back in 2008, or even much earlier, if you said China was slowing down commodities got punished. They would drop 5-10% in a day and could end up down 15% over two days, if you were lucky. Anyone that bought KZL or Zinifex back then could probably confirm that.
Metals are presently down about 2% this week and are up at the moment, so something doesn't add up. Traders don't believe that China is in for a hard landing. Eventually sense will prevail as it always does and we'll all get on with it and prices now will be seen as a bargain. They always are.
KZL Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
