The further away from ‘normal’ a prediction is, the less our brain is inclined to believe it. That anchoring mechanism is then backed up by a second survival trait. The tendency to stay in the safety of the herd. The result?
Caterpillar [NYSE:CAT] shares are up 55% for the year. Being so big, and having operations so wide, it’s the perfect bellwether stock to see how the global economy is ticking over.
There’s still a shaky feeling around the global economy, as people worry what years of money printing and low interest rates have done. But that’s precisely why interest rates have to rise. And soon…
‘The ASX will move its equity markets settlement and clearing system onto blockchain-inspired technology'. So there you have it. Blockchain technology is real. It’s not a mirage. It’s not a fad, as so many have suggested. It’s simply a better technology, which is going to replace the old ways of doing things.
Five days ago bitcoin passed the British pound and became the 6th most circulated currency in the world. It’s difficult to comprehend the scale of this crypto revolution. Particularly the incredible speed that digital assets are growing.
Tax cuts can have powerful effects on company — and therefore market — valuations. If you think there is no substance behind the relentless rise in US stocks this year, think again. Having said that, it doesn’t rule out a sizable correction taking place. There are two scenarios to look out for here.
Calls for an inquiry into misconduct in the banking industry have been coming for some time. If public confidence in the banks is shaken, that could be more damaging than the real potential for misconduct to be brought to light and punished. So, is this the end of the banks’ dominance in Australia? Are our favourite dividend-paying stocks in trouble?
The royal commission is likely to recommend increases in regulation, red tape and bureaucracy as the solution to the problems that arise. They are less likely to look at options like increasing market competition or mandating technological improvements. And funnily enough, that’s perhaps what the big four banks actually want in the current environment.
To get a better idea of how the Chinese economy is travelling, keep an eye on commodity prices like iron ore and oil. China is the major buyer of these crucial commodities. While their prices remain supported, you know the Chinese economy is doing OK.
It’s the debacle that keeps on giving. It’s perfect symbolism for an inept, wasteful and completely incompetent Australian political system. Because access charges for the NBN are higher than what the consumer is prepared to pay, providers are taking shortcuts and trying to protect their margins by providing a poorer service.