Tuesday, 20 March 2012

Better on a bike than in China . . . .

So BHP has decided to state the obvious and warn investors of a change in Chinese consumption of key commodity Iron Ore. It doesn't have to be the end of the world for BHPs share price, though it's going to struggle now ex- the petroleum divisions numbers. The stock trades on a single digit multiple from what I see, so maybe some of this is factored in. Having said that, readers of this blog will have noted my numerous concerns regarding the north south commodities pipeline and the potential effect on the Australian dollar. The AUD was back under 1.05, the only word of caution for the shorts is that RBA Governor Stevens shows no sign of cutting rates, therefore the carry trade will provide support.

Meanwhile overcast skies here cleared to a fine if slightly chilly day. I rode in winter clothes minus one layer. A reverse Ballaison with an adjustment here and there. 65k's it total. The bike is riding well since having the 12-27 cassette added to the Eastons. I'm happier with my form and want at least one more big hill climbing session before Italy. I already have an idea that it will be this Sunday. Stay tuned for more information.

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