It’s the sort of boring fact that the investment industry doesn’t generally alert you to. And to be fair, it’s not very exciting. At all. But it does appear to be true, at least up to about 2003, that reinvested dividends massively increase your total return in common stocks over time.
November 30th, 2011 | The Daily Reckoning | 1 comment | ContinuedAll Posts Tagged With: "australian economy"
S&P Puts Culture of Greed on Death Watch
Well you can forget about today’s modest little overnight rally in the US and Europe. Ratings agency Standard and Poor’s rained on everyone’s parade after the market closed. S&P downgraded 37 global banks. It upgraded two.
You’d think banking would be a low-profit, low-growth business to be in during a Credit Depression. At least we’d think so.
November 30th, 2011 | Dan Denning | 0 comments | Continued
US President Obama Battles China for Australia Relations
Big Dog in the Pac
US President Obama is in da house! And he’s received a pretty warm welcome since stepping through the door. Now while China isn’t over the moon about his trip to Australia, it’s a nice change for the president. He’s not too popular at home.
November 17th, 2011 | Greg Canavan | 5 comments | Continued
Banning Short Selling Does Not Improve Quality of Sovereign Debt
But that it’s a good investment idea…well that is another matter entirely. And politicians who are blaming euro bond weakness on short sellers are looking for a villain that is not them. It’s a confusion of cause and effect, like blaming the buzzards for the death of the corpse. It does buy them time though, in the blame game.
May 19th, 2010 | Dan Denning | 9 comments | Continued
Inflation is a Reality in China
Bloomberg reports that consumer prices rose by 2.7% in February. That’s the fastest monthly growth rate in 16 months. And it eclipses the annual yield on savings deposits of 2.25%. Savers aren’t beating inflation. And if they can’t do that, they may as well spend the money. That could ignite a rising price cycle in China that monetary authorities want to avoid.
March 12th, 2010 | Dan Denning | 7 comments | Continued
Debt Drugged
Governments and central banks have managed to engineer some more spin, but only at the expense of piling more debt on top of the already wobbling structure.
March 6th, 2010 | Nickolai Hubble | 2 comments | Continued
Chinese Government Expected to Sign Off on Second Stimulus Package
Chinese bank lending and credit growth is already through the roof. Last year’s $685 billion stimulus program sent fixed asset investment in China much higher. It was, by most accounts, hugely supportive of resource prices, and thus most welcome in Australian resource circles.
December 4th, 2009 | Dan Denning | 8 comments | Continued
Dubai Debt Story More Like Bear Stearns Less Like Lehman Brothers
But first things first. Dubai World is not nearly large, leveraged, or systemically important as either Bear Stearns or Lehman Brothers when both those firms failed. For those reasons, it’s unlikely that the failure of Dubai World (and we’re not saying it will fail) would, by itself, cause a global deleveraging.
November 30th, 2009 | Dan Denning | 18 comments | Continued
IMF Report Concludes Aussie Banks are “Very Sound”…
The Guv also said he would not be too timid about raising interest rates. He believes the threat [of global financial calamity] has passed and that the bigger threat may well be inflation. That kind of tough talk sent the Aussie dollar right up to over 92 cents against the greenback. If it weren’t late fall, now might be the perfect time to take a trip to America and see how cheap things really are.
October 16th, 2009 | Dan Denning | 13 comments | Continued
A Flawed Theory on How to Manage an Economy During a Recession
Your editor spent last night in a discussion with a querulous and drunk Aussie over the stimulus. “It looks like it worked to me,” he said. “Only world economy still growing. GDP up. We’ve got China. Looks like Ruddy and Swanny know what they’re doing. You’re just a hack. You’ve never run a country. And you’re a Yank!”
October 13th, 2009 | Dan Denning | 100 comments | Continued
Why I Would Have Raised the Interest Rates
Am I privy to the discussions of the RBA Board? No again. But I do know this. I do know why I would have raised rates, and would keep on raising them until the Government gets the message.
October 9th, 2009 | Dr. Steven Kates | 16 comments | Continued
The Dead Weight Cost of the Stimulus
On 21 September I provided testimony to the Senate Economics References Committee on the damage done by the government’s “stimulus” package. The submission was broken into five separate sections.
October 2nd, 2009 | Dr. Steven Kates | 35 comments | Continued
Government Takes Away Almost Two Billion Dollars from Telstra’s Market Cap
The move we refer to is the forced breakup of Telstra’s retail and wholesale businesses. It will separate Telstra’s physical network from the services side of its business. The Minister announced legislation to achieve the split yesterday – and he did not make it in the form of a request.
September 16th, 2009 | Dan Denning | 4 comments | Continued
Australia Might Avoid the Technical Definition of Recession
You’ll recall that the Aussie economy did contract by half of one percentage point in the fourth quarter. That was pretty mild compared to the 6.2% contraction in the U.S. But if the trade-supported Q1 GDP figures can eke out a gain (“positive growth”), well then Australia will join the odd couple of Poland and South Korea…
June 3rd, 2009 | Dan Denning | 2 comments | Continued
Immoral Governments Pursuing Inflation With Gusto
The understatement of the day comes from Dow Jones newswires. “A pandemic would deal a major blow to a world economy already suffering its worst crisis in decades, and experts say it could cost trillions of dollars.”
April 28th, 2009 | Dan Denning | 7 comments | Continued
