Iron ore is trading at US$138.85 which is near its 52-week high of US$144.16 (and well above its 52-week low of US$103.55) and yet the price of BHP shares is dropping. They were A$50.54 on the 2nd of January but have since dropped to a low of A$47.71.
Yoy may have guessed by now that I've piling into them over the last week, expecting each day to be the end of the fall, only to see them drop lower again, until today when they merely drifted a little lower.
Of course, iron ore prices have been even higher than US$138.85: just look at the prices in 2021/22, although I wouldn't bet on them going that high again. What I do bet on that the price of BHP will return to around A$50 by next month, certainly before the next dividend is due.
Not that those daily or even monthly fluctuations are all that important; what is important is what the price will be in the long run; although, as Keynes so famously observed, "In the long run we are all dead".
Until that happens, all YOU need to do to cash in on BHP's price fluctuations is to buy when I sell and to sell when I buy. I am happy to offer you a free subscription service in which I tell you of my trades.
