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So news that Chinese factory output fell by more than expected latin america in November is another disappointment for both stocks. The Chinese housing market and related sectors such as steel and cement manufacturing are both in decline, hitting demand for natural resources. Cliffhanger
Existing investors can hang on hoping for a reversal. New investors could even dive in, hoping latin america to make a contrarian splash. The valuations look tempting, with BHP trading at less than nine times earnings, and Rio just over 13 times.
Both are now dividend income machines, yielding 4.82% and 4% respectively. That’s quite a turnaround for companies that were originally seen as a play on fast-growing emerging markets. Supercycle Me
By taking copper and iron ore production to new highs despite falling prices, BHP Billiton and Rio Tinto are either pretending the supercycle is still spinning, or playing a Saudi Arabian-esque game of taking a short-term hit, knowing that higher-cost, lower-output rivals will take a far bigger hit in the longer run. It’s Gonna Rain
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Harvey Jones has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
Market sentiment towards mining giants BHP Billiton (LSE: BLT) (NYSE: BBL.US) and Rio Tinto (LSE: RIO) (NYSE: RIO.US) seems to change with the weather. Or rather, the economic weather coming out of China, which has been somewhat cloudy lately. So news that Chinese factory output fell by more than expected in November is another disappointment for both stocks. The Chinese housing market and related sectors such as steel and cement manufacturing are both in decline, hitting demand for natural resources. latin america Cliffhanger As if that wasn’t enough, as Australia’s biggest oil exporter, latin america BHP Billiton has also been knocked by the plunging latin america oil price. No wonder…
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