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.
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.
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.
This two-tiered financial system does nothing more than prevent normal people from growing their wealth. It’s skewed towards protecting the big earners, while ensuring the taxpaying masses continue to plod along and pay their ‘fair share’.
Investors simply aren’t worried about anything. Which means the market isn’t priced for any kind of worrying event. When you get such pervasive optimism, it is indeed a time to be worried.
The Aussie market didn’t like the data, with Myer shares falling 4.6%. But the jokes really on the early investors. The departments store share price is now worth one fifth of value compared to initial public offering price of $4.10 in November 2009.