There are no certainties in investing, and there was no better demonstration of this than iron ore last year.
Despite Western economies struggling under the strain of steep interest rates and China battling deflation, somehow iron ore still kept flying off the shelves as fast as miners could produce it.
Shaw and Partners senior investment advisor Jed Richards sees no reason why this won't continue in 2024.
"While the economic outlook for China appears subdued, Chinese steel production continues to grow," Richards told The Bull.
"Iron ore stockpiles have reached multi-year lows in China amid limited new supply."
That's why more than one expert is recommending that ASX iron ore shares might be a prudent buy right now.
Here are two that are tipped to have a massive year:
Image source: Getty Images
'Outlook bright' in 'tight iron ore market'
Richards loves BHP Group Ltd (ASX: BHP) for iron ore exposure.
"We believe iron ore prices will remain elevated in a tight iron ore market. Consequently, BHP's outlook is bright.
"Analysts around the world will need to adjust their forecasts for iron ore prices and upgrade their research."
As a multinational resources giant, BHP also produces many other minerals. This provides investors with other boom materials like copper.
"I expect the strong commodity cycle, which has lasted longer than initially anticipated, to continue in 2024."
The BHP share price is currently close to where it was a year ago, providing a decent buying opportunity.
The shares hand out a handy 5.3% fully franked dividend yield.
Remarkable staying power
As much as Fortescue Ltd (ASX: FMG) has lofty ambitions in the green energy industry, iron ore remains its bread and butter.
The shares were predicted to dip to the $16 level due to bearish forecasts about global iron ore prices.
However, the stock ended up defying expectations with its resilience.
"Fortescue confounded analysts throughout 2023," said Fairmont Equities managing director Michael Gable.
"Fortescue never traded anywhere near $16. It had been trading around $21 levels for a considerable period of 2023 before the latest breakout left it closing at $28.03 on December 21."
Indeed the shares have risen more than 30% over the past 12 months and are hovering above $28.
Gable remains bullish on Fortescue for 2024, as he reckons the Chinese government will soon bring in economic stimulus.
"Possibly lower US interest rates in 2024 and a softer US dollar will also benefit the resources sector," he said.
"We believe the increase in share price momentum appears to be at an early stage."
