Jeremy Grantham’s latest quarterly newsletter is on the GMO website and as usual it is an educational, pragmatic and brilliant read. There is so much to take away from this one. There are three parts to his ‘longest quarterly letter ever’… 1. Investment advice from your Uncle Polonius …which contains 10 absolute must read points. …
Monthly Archive: February 2012
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Feb 24
I always like a good interest rate or yield
Unfortunately whilst the yield on Greek 1 year bonds is high at 730% (yes there’s no decimal point), it can hardly be described as good. When you have a 730% interest rate on your 1 year loan, its pretty safe to say that your chances of paying it back are zero. I understand why Greece …
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Feb 20
Excellent long term performance from bonds…but there’s a lot more to it
A look at the average returns of bonds over the last 30 years does not suggest that equity returns have really been worth the risk. Table 1 shows the returns on Australian Bonds (Aust Comm Bank All Series/All Maturities) versus the accumulated return of the Australian sharemarket (S&P/ASX 200 TR) and whilst equities have the better performance …
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Feb 18
RSS Feed not currently working
Since I changed the look and feel of Fureyous, it appears the RSS Feed has ceased to work so my apologies for those of you who receive notification of posts via RSS. I am currently working on fixing it and will advise by updating thispost once it is working again. I made an attempt a …
Feb 16
Platinum Asset Management…they’re good but also a tad greedy
Platinum Asset Management is undoubtedly the most successful International shares manager in Australia. Their long term performance is way above global benchmarks and thanks to this, their support has been unwavering and they have grown and grown to be one of Australia’s largest fund managers with over $18 billion in FUM. Unfortunately like most companies …
Feb 11
Performance Reviews…and I don’t mean investment performance
I know this is a finance-related blog but I’m compelled to vent about something that has bugged me my whole career…the dreaded annual performance review…anyway… I was just readng Felix Salmon’s latest post, and found a sentence that I always believed in but thought I was the only one (mainly because it was just personal …
Feb 10
Don’t forget the E in PE
Source: RBA The above left chart, Forward PE Ratio, shows that the Australian sharemarket is potentially relatively cheap at the moment. The forward PE ratio, which is the ‘current price’ of the Australian sharemarket divided by forward estimates of earnings, has only been lower during the GFC and the 1990-91 recession ‘we had to have’. …
Feb 09
Australian Government Bond Yields…still creeping up
When I saw the headline in the Market section of today’s Australian Financial Review I thought bond yields must have gone through the roof but the above chart shows that there ‘s only a relatively small increase compared to a couple of weeks ago. Markets had obviously priced in a rate decrease from the Reserve …
Feb 07
A little bit of Bond misinformation
I was just reading the latest riveting story on bonds in this month’s Asset magazine and I feel compelled to share an example of misinformation that tends to annoy me a little (I know its probably a little pathetic but anyway)…John O’Brien, van Eyk – Head of Research, apparently said that many of the great …
Feb 03
A Must Read on “The Economic State of Australia”
Can’t believe I missed this…one of the finest finance thinkers around, Satyajit Das, has a blog entry on Economonitor discussing the current risks of the Australian economy…please click here for Part 1 and here for Part 2. So these are the must read, not Fureyous… 🙂 In these articles Das eloquently articulates the major influences on …