Rio, other commodity companies and the underlying commodities look good for a strong run into next spring, fuelled by a likely wave of quantitative easing and a relief rally in these severely depressed markets.
Just don't fall in love with them; the commodity boom has been running for a long time and it could be as little as several months before we see a major top in commodities.
Pumped-up-on-steroids economies, in the lead-up to a US election, have a higher-than-average probability of a major peak during the year of the election.
As next summer approaches, it should become clearer where things are heading, but at present I am bearish for 2013-14.
At this stage, I'd prepare to pay attention to the old phrase "sell in May and go away".
