The Aussie market is still tightly correlated to the US market. This, we suspect, is because global asset prices are keyed off of the global supply of credit. If we’re in a credit depression, US stocks will stagnate. Aussie stocks will track that stagnation.
December 6th, 2011 | Dan Denning | 1 comment | ContinuedAll Posts Tagged With: "aussie market"
It’s The Only Play Central Banks Know
The credit cycle has turned. The world is in a deleveraging phase. But central banks are still trying to reverse the process and provide more credit to households and businesses? They really only have one play in the playbook.
December 1st, 2011 | Greg Canavan | 0 comments | Continued
Not the End of the Greek Sovereign Debt Crisis
One key is whether the faux resolution of the Greek crisis will lead to rising sovereign bond yields. This might seem counterintuitive. If Greece is less risky and volatile, shouldn’t bond yields fall? Maybe not. If investors think the sovereign debt crisis is over, they may shift out of supposedly risk-averse assets like bonds and into equities. This would argue – in the very short term – for higher highs on the indices.
April 13th, 2010 | Dan Denning | 0 comments | Continued
As a Wealth Survival Strategy the Stock Market is a Death Trap
You should, by our reckoning, own a small portfolio of stocks leveraged to positive Black Swans (low probability but high magnitude events that drive a share price higher…like the discovery of a new ore body or the development of a new drug). These are the sort entrepreneurial ventures that will create new wealth.
March 5th, 2010 | Dan Denning | 25 comments | Continued
It Wouldn’t be a Real Bear Market Rally if it Didn’t Test Your Confidence in Your Position
Perhaps it’s too early to say. But after the long holiday break and the news that Goldman Sachs somehow eked out US$1.8 billion in earnings in the last quarter, you get the feeling that the Aussie market might enjoy a stroll in the green today.
April 14th, 2009 | Dan Denning | 6 comments | Continued
Chinese Wheat Production Hit by Disease
It’s a disconcerting fact that agricultural production today is an oil-based business. We turn natural resources into food. Petrol fuels the massive machinery that mass-production farming requires. Phosphate, potassium and nitrogen make up the chemical fertiliser that stimulates extra returns on crops. Rising prices wouldn’t so much of a problem if Chinese farmers could make up the difference with a good year.
May 26th, 2008 | Dan Denning | 0 comments | Continued
