Comments on: Dividends and a Sea Change in Corporate Behaviour Toward Shareholders http://www.dailyreckoning.com.au/dividends-and-a-sea-change-in-corporate-behaviour-toward-shareholders/2009/07/08/ An independent perspective on the Australian and global investment markets Sat, 20 Mar 2010 21:24:16 +0000 http://wordpress.org/?v=2.8 hourly 1 By: Justin http://www.dailyreckoning.com.au/dividends-and-a-sea-change-in-corporate-behaviour-toward-shareholders/2009/07/08/comment-page-1/#comment-88170 Justin Thu, 09 Jul 2009 02:19:49 +0000 http://www.dailyreckoning.com.au/?p=6501#comment-88170 I agree with the dividend bit. If the stockmarket keeps falling and thus there is no capital gains (leaving aside the possibility that the capital gain is just inflation),if there is no dividend, then there is no reason to buy shares, so the stockmarket will fall...... But hey, at least companies can borrow short term at a low rate, the yield curve is pretty steep, they can then buy bonds then sell them at a profit as curve flattens, all the while the RBA keeps the cash rate at a 49 year low! Until of course they can't and the curve inverts again...... I agree with the dividend bit. If the stockmarket keeps falling and thus there is no capital gains (leaving aside the possibility that the capital gain is just inflation),if there is no dividend, then there is no reason to buy shares, so the stockmarket will fall......

But hey, at least companies can borrow short term at a low rate, the yield curve is pretty steep, they can then buy bonds then sell them at a profit as curve flattens, all the while the RBA keeps the cash rate at a 49 year low!

Until of course they can't and the curve inverts again......

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