Imagine bringing in a billion per minute. This is exactly what Masayoshi Son did in a 45 minute meeting. Now armed to the teeth with cash, Son is busy finding places to put it to work. Yet strangely, he’s made an unorthodox investment that’s left analysts scratching their heads.
Amongst all the panic and hand-wringing over what the volatility of the past week means, we haven’t heard much about China. Which is kind of crucial, especially for Australia. Put simply (and accurately) if China holds up, Australia will be fine. So, is China holding up?
Something is risky if there’s a high probability to lose money, right? Investors are told investing in an index or ETF is far safer than the alternative, holding picked stocks. So not only can you make amazing returns, you can also take on far less risk. Dreams do come true... but try telling that to anyone who bought an ETF tracking volatility.
From a purely technical (charting) perspective, US stocks are due for a bounce. Like the price of bitcoin early last week, the S&P500 is now ‘oversold’. The important thing to watch here is how far the bounce takes stocks. If, for example, you see the market rally back to around 2,700 points and then run out of steam, I think you’ll see stocks subsequently fall to new lows.
I have no idea how long the next bull or bear market will last. But I’m confident that future bull runs will last far longer than bear markets. This is really what it’s all about — learning from the past to make better decisions in the present.
It was a truly nightmare week on the markets. If you trust the US Fed to be able to smoothly unwind its emergency low-interest rate policy without crashing a market bloated on low rate-driven investment, then you probably aren’t worried. If you don’t have that much faith in the Fed, you might see them as having painted themselves into a corner.
Today there’s too much information available. There are too many channels screaming for your attention. So whom do you trust? Who do you believe? Who is credible? Who is accountable? What we can also tell you is that transparency is a tell-tale sign of those you can trust.
If US bonds potentially rise to 3.5–4%, the ASX 200 could potentially drop 18%. That’s assuming the yield premium for holding stocks is around 2.5%. This kind of drop probably won’t happen over days or weeks. It’s more likely to happen over months. And in that time, I’m betting volatility will be here to stay. But rather than lament over a lumpy market, it’s really a time to celebrate.
February has seen a $60 billion fall in the Australian stock market. Every sector has been affected, and it’s hard to tell what's in store for the ASX.
Since its discovery in 2004 by UK-based researchers Andre Geim and Konstantin Novoselov, researchers have been salivating at the possibilities of the unique material that is graphene. It has applications in nearly every industry, from new ones like batteries and renewables to established industries like microchips and construction. Consider the markets it is set to disrupt.