From 1 November 1980 to 31 October 2009, a total of 29 years, an investment in bank bills would have yielded a total return of 1,257% which is an annual return of 9.41%…many banks provide this type of return for their customers and as we have found out in the last year or so, the …
Category Archive: Uncategorized
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Dec 03
A Simple 2009 Review and Outlook piece for clients
The year 2009 has turned out to be a significant turnaround year for the global economy and sharemarkets. At the start of the year, the word depression was mentioned often as many economists, investment professionals and politicians thought entering the world’s second great depression was a potential reality. Thankfully, around March 2009, “green shoots” of …
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Nov 27
Dubai World Default
Early signs in the US are that the Dubai World default may not really mean too much. Sure US Stocks fell by more than 1%…which isn’t too uncommon nowadays…but conversely, US Bond Yields are up suggesting there isn’t too much “rush to quality”. Time will tell but I’d suggest this is quite a tame reaction. …
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Nov 27
Best Pie Chart Ever!
Got this Fox News chart from flowingdata.com…possibly a little tragic but I can laugh at this all day. Send article as PDF
Nov 18
FPA toughen education rules for financial planners
The front page of the Australian Financial Review today talks of the toughening of education standards the FPA requires from 2015 (I’d rather they start now)…anyway…apparently the FPA expect financial planners to be tertiary qualified, pass a national examination, accreditation process, and from next year complete compulsory ethics training. I think higher education standards for …
Nov 18
Krugman says US Fed’s Cash Rate ideally should be minus 6.7%
My favourite Nobel Prize Winning economist’s article can be found here…This is quite an astounding conclusion but not too far fetched given the evidence. What really concerns me is that whilst the US Cash Rate ideally should be much lower, our Reserve Bank and (judging by the Yield Curve) our markets envisage significant cash rate …
Nov 12
State of the US Economy
For a fascinating outlook for the US Economy and property sectors, Federal Reserve of San Francisco’s Janet Yellen’s 10 November speech is a must read. Access it here. Send article as PDF
Nov 12
Australia’s unemployment creeps back to 5.8%
With the government downgrading its June 2010 unemployment expectation to 6.75% it appears we will be creeping there slowly given we have been around 5.8% for much of the last 6 months. This is largely thanks to a drift from full time to part time employment and of course the downside is that on average …
Nov 11
I hope this chart is wrong…as its a worry
Does this look scary to you? Highest PE Ratios since 2002 for MSCI World and highest for MSCI Australia since before the start of the chart?! I hope these are wrong, as I’m pretty confident the expected growth does not warrant these types of valuations. Send article as PDF
Nov 07
Macquarie is the only gutsy fund manager
Macquarie have a series of managed funds whereby they guarantee the index return, for whichever asset class, to the investor with an ongoing MER of zero. This series of funds is called their true index series. What Macquarie is saying and doing is that they have the ability to outperform the index after costs and …