The BRIC led commodities bubble peaked in 2007 and is in a long, slow decline back to long-term historical averages. All data point to China having similar infrastructure per person as the US except for airports and railways. Commodities are a classic boom and bust asset and long term they always return to the mean. What is obvious to a few today will have the majority shaking their heads in 5-10 years wondering "I never thought commodities would be trading at $1-3/share again."
That is one reason I am not buying at this low price. CLF is still losing a lot of money. They may lose less because they have cut the dividend but they are still losing money and it is not looking positive for that to turn around any time soon. Another reason is that we have not even seen a market correction yet. When that comes there will be more sellers with even less buyers. Would not be surprised to see this go to single digits. With the government not willing to cut back on employees the cost of living is even going to go higher. Less money coming in but more money going out with the high wages for government folks which usually uses 5 individuals to do one person's job. These economist's live in a glass bubble with little understanding of reality. The entitlement mentality is going to have a rude awakening.