Last week, Morgan Stanley finally broke the recent trend of broker upgrades to iron ore stocks. It has been equal parts amusing and disturbing watching the sell-side weathermen adjust their frail instruments before the building tempest. Little anemometers are spinning wildly off their axles. Plunging mercury has cracked the baubled reservoir at the thermometer’s base and is draining into the earth. Barometric needles are bent like gymnasts around the pin marking lowest ever readings. And still they don’t get it, blissfully recommending clients wade into the tumult.
The oncoming storm that will smash the mining boom in the Pilbara
A confluence of three factors are converging on the Pilbara's iron ore mines. The result will be a once-per-century economic cyclone, and miners better batten down the hatches.