Despite Australia having huge growth in renewable energy sources in recent years, and research from Australian National University saying we are on track to meet the Paris Agreement targets, we still need to ‘do more’.
The recent correction represents a decline of just over 9% from the peak. That compares to a decline of 5.1% earlier in the year. That is a solid dumping of stocks. Why the panic?
The thing about valuations is that they don’t matter until they do. What do I mean by that? In the midst of a bull market, investors ignore valuations in the belief that earnings will rise in the future and therefore justify today’s higher values.
Whenever the market plunges, there is always a plethora of opinions telling you what to do. Try to ignore all that. Forget opinions and try and focus on the facts. The best way to do that is to make a cold, rational interpretation of the charts.
Fundamentals impact investor psychology, and investor psychology has a big impact on asset prices. I’ve been writing a book on this and have recently reviewed the draft, so the concept of investor emotions having an impact on price is top of mind for me.
While the mainstream media portray Trump’s moves as ‘starting a trade war’, he is simply trying to level the playing field. Such a move will come at a cost though...
The Democratic Party has been an absolute disgrace. They used someone to make allegations against Kavanaugh that not one witness could corroborate.
Remember, Trump has already called for the declassification of material relating to claims that his team colluded with the Russians to influence the 2016 election. If this were really the case, why would he want to make declassified material, as well as text and email communication between key FBI investigators, public?
The Paris Agreement also asks developed countries to contribute to a fund to help developing nations with climate change. The fund is meant to raise an astounding $100 billion a year, but that doesn’t seem likely.
Over the past few months I’ve often brought up the performance of emerging markets in 2018 and how they are a sharp contrast to the performance of US stocks.