US markets bounced back overnight. There was no reason in particular. Probably just that, on consideration, the previous day’s falls might have been a little excessive. Still, the market feels a little bit like the proverbial cat on a hot tin roof. That is, edgy, nervous, and ready to jump if need be. In my view, the risk of a trade war is higher than many people think.
American telecoms have been touting 5G as the latest and greatest. It will be 100-times faster than 4G. Such speeds will make 4G seem like those days when mobiles were just bricks. Bringing 5G to consumers first has huge financial rewards.
If you want to get into an asset in a bull market instead, take a look at gold. Since bottoming in late 2015, gold has been in a bull market. It’s just that most people haven’t noticed. Early bull markets are tough to identify, in the same way that early bear markets are tough to identify.
Warren Buffett says it’s OK to miss out on raging bull markets. Underperformance over the short-term doesn’t matter all that much. What’s far more important is that you keep control of your losses. When you find yourself in a bear market, that’s when you should be trying to outperform.
The threat of a trade war between the US and China has diminishing. It’s interesting to note that Trump’s continued threats seem to have forced China’s hand. Now that the threat of a US–China trade war is receding, Australia can turn its attention to more positive developments. The Australian government is hinting towards trade talks with Britain.
These are my own personal views on how the Australian Tax Office should be approaching the crypto revolution. Public consultation is a positive step forward. Hopefully they’ll take on board a common sense approach and interact more with those on the inside of this revolution.
I’m not just describing the technical or momentum trader here. Value investors also fall into this camp. Instead of buying stock they believe to be cheap. They buy stocks they believe the market will believe are cheap. For most, this kind of strategy turns out exactly how you’d think. It wastes a whole lot of time and money.
The ATO has put out a public consultation on their application of antiquated existing tax law and the new crypto revolution. Through their ‘Let’s Talk’ portal anyone can make a public submission on the treatment of crypto for tax purposes. I’ve made my submission already, and I felt it important to share my feedback to the ATO with you as well.
Mass EV adoption won’t be immediate. But it does seem like the industry will continue to grow over the next decade or two. For investors like you, it’s worth digging around. It’s still slim pickings for listed EV infrastructure investments. But as time rolls on, you’d expect some of these businesses to list for funding or growth reasons.
The stuff that’s written about why the market did this or that on a daily basis is a good example of short term narrative. Sometimes it makes sense, sometimes it doesn’t. Because the new narrative in the market is that stocks are falling due to ‘trade fears’, any rise must mean that ‘trade fears’ aren’t as bad as first thought. You saw that yesterday with Wall Street’s strong recovery.