‘Red light blinking’ over China that ASX investors can’t ignore
China’s property sector is still in deep trouble, and that’s bad news for Australia’s iron ore giants. The great ASX rotation from banks to miners may be on shaky ground.
Is the great ASX rotation finally playing out? It sure looks that way.
The long-held theory goes that the extraordinary run-up in Commonwealth Bank shares will come to an end when investors start to shift out of bank stocks and into more attractively priced miners. Since CBA shares peaked on June 24, the stock is down about 4.7 per cent. Over the same period, BHP shares have risen 13 per cent and Rio Tinto is up 11 per cent.
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James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.com
