While it might be too early to jump in and thumb your nose at the Amazon effect. Keep an eye out for turning points like the above. That is, when you see buying on negative news. It means the news wasn’t as bad as expected. Often this is a turning point.
Amazon is set to take over the retail and logistics world in Australia. Whoever recycles and supplies cardboard boxes must be ready to mint a small fortune.
If you’re so well prepared you already have Christmas covered, you’re not going to like what’s coming next. The problem with being too well prepared this year is you’ve not allowed for the Amazon effect.
ASX 200 looks to have just experienced a ‘false break of the high’. The question is, just how bearish is it? Why worry about the market anyway? It’s only an index. That’s true. But getting the overall movement of the market right allows you to position your portfolio for maximum gains.
In this toxic political climate, investors have never been more jubilant. All around the world, shareholders are making hay. Even emerging economies are going well, too. As an investor, it pays to invest with the trend. And that trend is clearly on the up. For now, at least.
The beachhead has already been established. Its massive fulfilment centre in Melbourne’s outer southeast is ready. With quick access to the busiest cargo seaport in Australia, it’s clear Amazon doesn’t intend to start small.
Construction products manufacturer James Hardie Industries plc [ASX:JHX] climbed 4.3% this morning to $19.77 per share. Could this be the start of a late run to put the stock in positive territory for 2017?
Investors simply aren’t worried about anything. Which means the market isn’t priced for any kind of worrying event. When you get such pervasive optimism, it is indeed a time to be worried.
The Aussie market didn’t like the data, with Myer shares falling 4.6%. But the jokes really on the early investors. The departments store share price is now worth one fifth of value compared to initial public offering price of $4.10 in November 2009.
Buying out of favour stocks is hard for the average investor. As I said, we’re not wired for it. We’re wired for conformity and groupthink. In evolutionary terms, wandering too far from the tribe was a recipe for an early death.