Australia's treasurer Peter Costello, has told local investors not to rely too heavily on hot resource stocks because the minerals boom would inevitably come to an end.The Sydney Morning Herald, reports that, "Mr Costello told a Committee for Economic and Development of Australia lunch in Sydney yesterday that the surge in commodities prices driving the Australian sharemarket to record highs may only have a couple of years left to run.
He said Chinese economic growth would ensure demand for commodities remained strong for an extended period but the supply of raw materials from exporters across the world would grow quickly. This will eventually hit resources prices and the profitability of resources firms".
It should be noted that he was attempting to lure local investors into investing heavily in Telstra, Australia's state-owned telecommunications giant.
