According to Bloomberg, ‘Mom-and-pop investors haven’t been this crazy for Hong Kong initial public offerings since 2009.’
While it might be too early to jump in and thumb your nose at the Amazon effect. Keep an eye out for turning points like the above. That is, when you see buying on negative news. It means the news wasn’t as bad as expected. Often this is a turning point.
Economics 101 will tell you if you’re creating more of something, then the price of it (the value in this case) will go down. That’s what’s happening with cash. And no one really knows the consequence of this on the global economic situation. But as long as the opportunities are out there, I remain bullish.
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.