Amazon is set to take over the retail and logistics world in Australia. Whoever recycles and supplies cardboard boxes must be ready to mint a small fortune.
Content production company Big Un Ltd [ASX:BIG] rose 6% today on the ASX, reaching $4.24 per share.
If you’re so well prepared you already have Christmas covered, you’re not going to like what’s coming next. The problem with being too well prepared this year is you’ve not allowed for the Amazon effect.
Unless we’ve reached some magical equilibrium point, a world where strong economic growth can live with low interest rates and low inflation, something’s got to give. I think next year it will all kick off.
Bad debts are at historic lows, and it’s proving a big windfall for the big four. But you have to think, if house prices had gotten so high and had the consumer stretched to breaking point, you’d expect bad debts at the big four to be rising, not falling!
I’ll admit Amazon will stir the pot a little in Australia’s retail landscape. But from an investment point of view, I think the talking heads are focusing on the wrong areas.
My guess at this point is that the next sell-off will result in a panic in some parts of the market. And this may lead to a buying opportunity. The best way to outperform over the long term is to take advantage of others’ mistakes. And often, those mistakes are psychological.
Are we on the cusp of yet another rise in geo-political risk in the Middle East? It looks that way, and the implications for global markets could be massive. Where will you see it most from an investment perspective? Where you always do; in oil.
In this toxic political climate, investors have never been more jubilant. All around the world, shareholders are making hay. Even emerging economies are going well, too. As an investor, it pays to invest with the trend. And that trend is clearly on the up. For now, at least.
The beachhead has already been established. Its massive fulfilment centre in Melbourne’s outer southeast is ready. With quick access to the busiest cargo seaport in Australia, it’s clear Amazon doesn’t intend to start small.