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.
Perhaps we were thinking about it all wrong to start with. Rather than fintech taking over banking, they never really intended to. What we are seeing is that fintech companies are going for areas of business that existing banks left alone.
I’m not talking about simply one big central database. Or silos of data held by governments or health services. As you’ll have seen recently, such centralised stores of data are honeypots for hackers and criminals. That’s pre-blockchain thinking.
As the world’s largest stock market (the S&P 500) continues to trade near record highs, you’d assume the US economy is strong, right? The market is adjusting to ‘lower for longer’ interest rates. As long as economic growth doesn’t slow too much, this is the primary reason why stocks will remain elevated.
Not only will this become a form of protection from the potential calamities of the fiat money system, it could also provide the average person with a real, functioning money tree.
The general view has gone from one of another potential interest rate cut, to a question of when the rate rising cycle will start. But the just-completed reporting season didn’t exactly confirm that view. Overall, earnings growth was lacklustre. But that’s what you should expect in a low growth economy.
Some cryptocurrencies are actually starting to create blockchains Wall Street can get behind. Predicably, it’s the big names that are moving first…
You can still profit in a market trending sideways. All you have to do is come up with an investment idea, identify growing trends and only invest in what you understand.
The report found more than six million US adults will have their personal bankruptcies disappear over the next five years. That negative credit history has meant that banks have been unable to lend to those consumers. It means banks can start lending again, which will start greasing the wheels of economic activity once more.
The Commonwealth Bank of Australia has potentially just turned its free ATM withdrawals announcement into a marketing disaster. The new ATM rollout is pretty underwhelming to a lot of people. And just at the time when customers from other banks can now freely use your ATMs for withdrawals.