Corporate it is worth looking into the numbers for both RIO and BHP.

I usually steer clear of anything with a market cap over about 1.5bn - but in this case I think there is significant value in both these big names.

Take a look at their resource mixes and just how far spot prices (and long term growth rates) need to fall to get the companies back to something 'normal' like perhaps a 13x Fwd P/E.

Why are they trading so low? No way of knowing of course but I suspect it's the European debt woes, coupled with a very high AUD.

May go without saying but I'm a holder and have been buying over the past month or two. Very keen to hear alternative views on this but I believe they're both very undervalued, like, ridiculously so.