market

Today we were unsure whether we should serve you another warm helping of property…

Or whether we should take the time to look at something else. We thought of debt, but that was bound to end full circle in a property discussion. Incidentally, you’ll recall we held the Australia in the Red debt summit last month in Melbourne.

Well, I’ve received news from my publisher that the DVD and transcript of the evening is available to own. If you want to place an advance order, just click the link above for full details.

We’ve opted for something else today.

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Before we tackle yesterday’s market action, a quick visit back in time to yesterday’s Money Morning article. We posted the article on our sibling website, Daily Reckoning, and it’s attracted some reader feedback.

There’s discussion over whether your editor has hit the mark or missed it by a country mile. Our point is that whenever you have government interfering in the market it creates distortions – all of which lead to negative consequences which leads to further distortions.

In our mind, there is little or no difference between the government enticing first homebuyers to buy a house with the help of ‘free’ money, and businesses being given a tax incentive to invest now rather than later.

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The S&P/ASX200 fell 0.75% yesterday, while overnight on Wall Street with the Dow Jones Industrial Average lost 187 points. And in Europe the FTSE100 fell 2.61%.

The price of gold in Australian dollars is trading at $1,170.34, while in US Dollars it trading at $928.75.

The Aussie dollar weakened versus the US dollar and Japanese Yen, trading at USD$0.7935, and JPY77.58.

Crude oil lost some ground overnight, closing at USD$70.59.

For the biggest movers on the market yesterday click here…

And today on the economic calendar we have the Reserve Bank Board minutes.

Cheers.

Kris.

We only have a brief edition of Money Morning today as we’ve been distracted by preparing a special update for the Australian Small Cap Investigator, and adding some further touches to the new income newsletter…

Writing of which, we should be ready to launch in late June or early July, so keep an eye on your inbox for further news.

Following on from yesterday’s Money Morning, we’ve received a number of emails from readers about other “tax effective” schemes promoted by financial planners and accountants.

One of them – would you believe it – was a non-property related scheme being promoted by a real estate agent!

We recall an apocryphal story from some years ago that says “once you start getting stock tips from the bellboy you know it’s the top of the market.”

We wonder if the same goes for real estate agents and tax-effective investments. Surely it can’t be the top of the market already!

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