I say it’s time to move on to trust in something else. Not backwards to gold, but forwards. To a trust in indisputable maths. A trust in decentralised power structures. And a trust in technological innovation. That means bitcoin and cryptocurrencies.
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!
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.
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’.
We are glad and, at the same time, regretful that we have launched two cryptocurrency services. However, we like to think that by giving folks advice, and educating them on the sector, they’ve become wiser about how it all works.
Each year millions of traders are fixed to their screens. They’re looking for trends and momentum in the forex market. According to the Bank for International Settlements, the average daily value of forex is around US$5.3 trillion!
There’s a new game in town. And valuations in this sector are soaring. Goldman Sachs desperately wants in on it, and it’s where the big money is being made.
Markets have decided that, due to recent weak retail sales data, the Reserve Bank will only increase interest rates if inflation comes in stronger than expected. Ironically though, the things that could push inflation higher are in part the reason behind the weak retail sales.
After going sideways for five months, the Aussie market has been on a tear lately. At the same time, our largest trading partner, China, has been in the news — and not all of it is for positive reasons.