Going for broker

As pretty much expected, the Aus market is suffering a minor set back today. I say minor because, although nominally big, no new lows have been made. And in that respect it has some similarity with the New York markets from last Friday; although they also registered big falls, they only fell to the bottom of the top bracket between 11,375+/- (basis DJIA) and 11,750. So far this doesn't even count as a correction.

I did find the article linked above interesting for its comment:

"Goldman Sachs JBWere analysts warn of a "big resource sell-off" and predict commodity prices could fall up to 20 per cent over the next few months.

"Anyone out there who seriously is even contemplating spot numbers as a reason to buy resource stocks right now needs to have a long hard look at themselves," Goldman Sachs analyst Richard Coppleson said in a research note.

As noted in a prior post, brokers were saying that the analysts' use of average costs (instead of spot prices) represented "the biggest opportunity in the world equity markets." Now that prices are going the other way just a tad, the analysts are giving the brokers a serve back. Bitch, bitch, bitch.