Hi! Nice write-up. My question as a value investor is... What if iron ore price goes down under $100, or $90, or $80? That was the case in the past and if recession comes this is possible scenario. Market is irrational and both stock prices could go down 40%, 50%. What would you do then? As I want that my investment prevents a lot of money from becoming a little.
Thanks, so I don’t see a recession soon. Government spending alone is enough to hold up the economy for a long time. Actually we are entering a global easing cycle, so that should be very good. It’s always possible that prices go down, no doubt, but China has found a bottom here (in my opinion), India is growing and so is the rest of EMs. Many are missing the Forrest for the trees. Gerdau has less risk than Vale. Always depends on your risk tolerance and your own investment style. If you aren’t comfortable, just wait a bit, do some research and come back later. Just my honest advice.
Hi! Nice write-up. My question as a value investor is... What if iron ore price goes down under $100, or $90, or $80? That was the case in the past and if recession comes this is possible scenario. Market is irrational and both stock prices could go down 40%, 50%. What would you do then? As I want that my investment prevents a lot of money from becoming a little.
Thanks, so I don’t see a recession soon. Government spending alone is enough to hold up the economy for a long time. Actually we are entering a global easing cycle, so that should be very good. It’s always possible that prices go down, no doubt, but China has found a bottom here (in my opinion), India is growing and so is the rest of EMs. Many are missing the Forrest for the trees. Gerdau has less risk than Vale. Always depends on your risk tolerance and your own investment style. If you aren’t comfortable, just wait a bit, do some research and come back later. Just my honest advice.
Thanks for the write up. I agree that steel ain’t going anywhere anytime soon. Copper as well. I need to look more into this. Thanks
Much appreciated!