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.
As battery technology and electricity generation/storage improves, the case for efficient EVs only gets stronger. Tesla is one of those gravity defying stocks. Investors have ‘bought in’ to Musk’s vision. They see a future full of EVs, preferably Tesla EVs. And if you look at the current figures, you’d have to hand it to Elon and his crew. So how could such a dominant player today be the horse of tomorrow?
Aussie gold stocks have outperformed strongly during the market’s recent convulsions. They are a great hedge in times of increasing economic uncertainty like we’re in now. The bull market conditions are set to continue for gold. The Aussie dollar gold price is approaching $1,750 an ounce, the highest price since mid-2016 and enough to fatten most well run gold miners’ margins.
China already is one of the great patent producers in the world. Now that the government has doubled their quota, you’d expect China to increase their tech focus. China isn’t just thinking for themselves anymore. They’ve become one of the most important contributors to our global technology advance. And they’re helping to create must-watch industries, which hold huge promise for the future.
I’m not sure what’s worse; Trump’s trade war that is set to wipe billions more from the Aussie market today, or Steve Smith’s attempts to wipe one side of a cricket ball with tape to get some sort of a demented edge to win a cricket game. But when you think about it — or at least when you think about it the way that I do — both situations might not be as bad as you think.
A trade war is on everyone’s mind. Even central bankers, who usually don’t comment on such events, are talking about the dangers of such a scenario. On Friday, we also followed US stocks down as investors digested Trump’s further tariff plans. If China retaliates, investors could assume the worst. Thus, it would be reasonable to look in these industries for bargains...
Prime Minister Malcolm Turnbull may be one step closer to passing corporate tax cuts. This comes after One Nation’s Senator, Pauline Hanson, backflipped and announced she would back the company tax plan. Ms Hanson struck a deal with the Turnbull government. But what does this tax cut plan mean for Aussie businesses and workers?
The scandal exists because harvesting of millions of Facebook users data by Cambridge Analytica. However, the tide is shifting. These scandals put the actions of centralised power in the spotlight. It lets people know how these companies abuse their power. It also teaches people that personal data has value. It is a currency. And it’s possible to get something for it…if you want to.
What’s far more important is how investors reacted to the Fed’s outlook and their decision to increase interest rates. After the rate hike decision, US bond yields spiked, almost clearing 3%. But even before bond yields reach that 4% market, there’s one group of stocks that could fall regardless. Some believe 2018 could be the tipping point for big US tech.
There’s a spate of horrible news doing the rounds about bitcoin. It’s got nothing to do with the value, price, or even the technological progress of bitcoin. It’s the media and those in power using bitcoin as a scapegoat. They’ve found respite, a diversion from the spotlight that’s been sharply focused on them recently.