When the stock market responds to strong economic news with falls, it’s not a bullish sign, folks. It tells you the good news is largely priced in, and that it is, in fact, now bad news. Why?
Today, I want to focus your attention on something entirely different. I want to highlight some ‘fake news’ that should make you very wary of tuning into the mainstream media.
The market is in the process of pricing in a Labor government. This means things like more renewable energy investment, a potential end to franking credit rebates for retirees, and an end to negative gearing on existing homes.
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.
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.
Last week, Assistant Governor of the Reserve Bank of Australia made a speech about money and credit. Sounds boring, right? Well, that’s what the bankers would like you to believe...
Yesterday I discussed the gold price and provided some reasons as to why the yellow metal could move higher in the months ahead. Let me emphasise the word could.
While the sale is still subject to a decision by the Foreign Investment Review Board (FIRB), Durie says that CKI, along with the 100% Chinese government owned State Grid, now control nearly all of Australia’s east coast energy distribution assets
Victoria’s future energy supply is in a precarious position. Bass Strait gas reserves, which have long powered the state, are in decline. Additional gas needs must now travel down the pipeline infrastructure from up north. For a state with Australia’s fastest population growth, it’s not a great situation to be in.
What if something more fundamental is going on that we don’t really know about yet? This is the scenario I’m leaning towards, and it all comes down to the poor performance of the emerging markets this year.