The unconventional wisdom is that the Fed has learned nothing from the last bubble – or is so scared of deflation it’s willing to gamble on another bubble in asset prices. The trouble , the eventual bust in asset prices has to be reckoned up. And the Fed, along with all central banks who key off the Fed’s policy, are just kicking the can down the road, hoping asset values improve.
November 10th, 2009 | Dan Denning | 7 comments | ContinuedAll Posts Tagged With: "Kris Sayce"
Your Average Australian Super Fund
Is it down 0.8% for the year (since January) or in the last twelve months? Or is the average super fund down 0.8% from its all-time high? The average super fund fell 21% from its heights to its lows during the GFC. But the Aussie market has rallied 55% this year.
So does this mean super has done well? Average? Above average?
November 9th, 2009 | Dan Denning | 14 comments | Continued
Stocks Better than Bonds When Inflation is a Big Threat
What we make of it is that dividends used to account for a much larger percentage of your total return in stocks than they have in the last twenty years. Times change. There’s no rule that says the future has to be just like the past. But if stocks beat inflation, should you invest in stocks for income or capital appreciation? That’s the second question.
October 19th, 2009 | Dan Denning | 4 comments | Continued
Australia Possibly Among Top 10 Countries Globally Measured By Size of Gas Reserves
“We expect that Australia, in the very near future, will be among the top 10 countries globally measured by the size of its gas reserves. The size of Australia’s gas reserves means that further strong growth in this country’s LNG exports is assured,” Dr. Bethune said in Energy Quest’s latest quarterly report.
September 2nd, 2009 | Dan Denning | 8 comments | Continued
How Did Australia Get Caught Up Losing Money in Commercial U.S. Real Estate?
In yesterday’s Age, Bwembya Chikolwa, a lecturer in the School of Urban Development at Queensland University of Technology, says Aussie super funds had money to burn…
September 1st, 2009 | Dan Denning | 1 comment | Continued
Gorgon LNG Deal with China a Really Big Deal
Well just a day after highlighting the size and scope of the Gorgon LNG project in Western Australia, we have news that it really is a big deal. It is so big, in fact, that Martin Ferguson, the Federal Minister for Energy and Resources, said Australia is emerging as an “energy superpower.”
Shazzam!
August 19th, 2009 | Dan Denning | 5 comments | Continued
What Assets are Going to Beat Inflation in the Coming Ten Years?
Last night was trivia night in Elwood. Your editor sat across from Australian Wealth Gameplan editor Kris Sayce. Between questions about how many venomous snakes there are in Australia and whether New South Wales is larger than South Australia (it’s not), we found the time to query him about whether buying inflation indexed bonds from the Australian government was a good investment strategy.
August 14th, 2009 | Dan Denning | 4 comments | Continued
Global Credit Shortage is Over According to European Central Bank
That all sounds like common sense. So why are so few policy makers using their head? The people who hope the global economy can be revived through a resumption of credit growth seem to forget that it was massive credit growth that created the problem (massive global imbalances, huge debt levels, and mal-investments) in the first place.
July 23rd, 2009 | Dan Denning | 2 comments | Continued
Meredith Whitney and the Buy Recommendation on Goldman Sachs
Hold that thought. Her recommendation preceded Goldman’s actual announcement on Tuesday that second quarter net earnings were up 65% to $3.44 billion. The company, like Wall Street’s very own chosen-one-boy-wizard, has once again waved its magic wand and produced something remarkable. So let’s remark on it…
July 15th, 2009 | Dan Denning | 3 comments | Continued
There is More to Wealth than Money
Taleb’s point is not a popular one. But it is a realistic one. The fiat money, leveraged finance Western financial system went global in the last twenty years, providing an epic rise in asset prices (and the debt used to purchase them). There’s no doubt that real goods and services have traded hands with world growth.
July 3rd, 2009 | Dan Denning | 9 comments | Continued