As soon as the central banks try to withdraw stimulus, the economy and markets slump. The West is only six years into its super-low rate interest rate experiment.
With bank deposit rates at record lows, investors have turned to the stock market for income. And companies have stepped up to the crease.
Early this morning, GWA Group announced it would be giving shareholders a capital return of 28.8c per share.
The problem here isn’t exclusive to NewSat. Intangible assets and ‘goodwill’ on a balance sheet are unicorns and fairy dust.
At 6:27 on Tuesday, Singtel Optus announced it was seeking delisting from the ASX. It expects to suspend trading in late May and officially delist in early June.
If the Australian stock market does need another interest rate cut to breach 6,000, then we could be in for a longer than expected wait.
If you’re sick of central bank mumbo-jumbo and you want to get back to pure stock speculation, beaten down stocks in the resources sector are the best place to start.
Investors are scared. They’re buying dividend stocks, not because they’re bullish on the outlook for the stock market, but because they don’t have a choice.
I urge you to develop the ability to read a stock chart and start to listen to what the market is telling you.
The past month and a half has seen the Australian stock market test the 6,000 point level thrice. Each time, it has failed.