Dryblower on the good news in Friday's overdue correction

VOLCANIC activity often starts with a preliminary tremble followed by an eruption, and while it’s easy to describe Friday’s global markets sell-off as a precursor to something nasty Dryblower reckons it was not the beginning of the end, it was the end of the beginning.

Dryblower on the good news in Friday's overdue correction Dryblower on the good news in Friday's overdue correction Dryblower on the good news in Friday's overdue correction Dryblower on the good news in Friday's overdue correction Dryblower on the good news in Friday's overdue correction

Put another way, what happened when Wall Street dropped by 2.5%, interest rates rose to their highest since 2014, and the gold price shed $US15 an ounce in a matter of minutes, will turn out to be good for the mining industry. 

Everything that happened was caused by the best economic news since the crash of 2008, an event which sent the world into a 10-year slowdown that included a slide to super-low and unsustainable interest rates that have caused most asset classes to be mispriced.

Friday’s tremor was an overdue correction to an over-heated market which had grown fat on that diet of ultra-low rates with investors now rushing to re-position themselves for what could be a long period of above average global growth and...

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