Is the economy so royally stuffed that the six-month ‘Job Keeper’ hiatus is merely a time bomb set to explode later on?
Iron ore is Australia’s number one export. Australia is the world’s iron ore powerhouse, with Brazil a close second. If iron ore prices fall below that and keep falling this is bad news. It will have a big effect on the Australian governments bottom line...
Things will get better. And if we can avoid the worst economic consequences, the markets will be ready to rebound at some point. Now is the time to think, strategise, and have your plan ready.
The fact is this… We — the taxpayer — are being asked to underwrite the risks of private businesses. In the modern world, profits are private; losses are social.
Investors are heading for the safety of cash. Is this the right move? Well, it’s not one completely without risk either.
We’re getting close to the time when smart investors start looking for opportunities as everyone else panics around them. If you’re going to try and ‘buy the dip’ though, I’d advise being careful. To take advantage of other people’s panic, you need to make sure you get in as cheap as possible.
US markets rip-snorted higher overnight. The white knights of the world’s central banks were saddling up to ride to the rescue. They announced they were ready to lance the crisis with sharp rate cuts and ‘monetary stimulus’.
The question for investors is not whether we’ll get a relief rally. We almost certainly will for reasons I’ll outline shorty. But will it be V-shaped and result in the bull market continuing? Or will it be a W-shape with a few stops and starts?
Financially speaking the market has been shaken out of its complacency by this latest Italian and South Korean news. At the same time the gold price and gold stocks started to attract investor funds as people sought out safe haven assets.
Big investors are prepared to pay so far over the odds so that they can avoid a lot of ‘crypto headaches’ that come from owning cryptocurrency directly. For them even with the inflated costs, many have deemed it an acceptable risk.