Iron ore miner Fortescue Metals Group Ltd [ASX:FMG] is a good proxy stock for Chinese economic growth. As you can see in the chart below, over the past few years, FMG’s share price has been in decline.
How bad will the next crisis be? JPMorgan Chase & Co. has an idea. ‘A decade after the collapse of Lehman Brothers sparked a plunge in markets and a raft of emergency measures, strategists at the bank have created a model aimed at gauging the timing and severity of the next financial crisis. And they reckon investors should pencil it in for 2020.
Central banks around the world used stimulus packages to boost their economies and in Australia, it also kept us out of a recession. For this to work, countries had to spend money, which has led to debt.
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
About 10 years ago, Australia made the decision to develop a LNG export industry. Multinational oil and gas companies invested $70 billion to build a number of LNG export terminals on Gladstone Island, in Queensland.
For over a decade, Australia’s housing prices were on the up. They soared higher, in absolute terms and in comparison to incomes, than Aussie real estate markets had ever been.
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.
Growth is up. Spending is up. Savings are down. In fact, savings as a ratio of income is just 1%. Here’s some high-level maths for you; a person on $100,000 a year is saving just $1,000.
The large gas reserves in the Bass Strait, which have fed Victoria for years, are on the decline. Now an increasing amount flows down the pipeline network from Queensland.
The crowd is the market. If you want to do better than the market, you have to think independently and look for opportunities where the market isn’t looking.