Property bubble? That’s the theory, anyway
By Philip Soos, Deakin University As Australian housing prices have boomed over the last decade and a half, there has been much discussion over whether a bubble exists in the residential property market. More recently, the concern is the record-low interest rate of 2.5% may cause a housing bubble. Conspicuously absent in the debate over…
The Great Bank Bubble of 2013
Welcome to the Great Bank Bubble of 2013 is the title of a UBS research note sent to clients earlier this month. UBS believes that Aussie banks are at bubble valuations considering our lacklustre lending environment. Citibank analysts wholeheartedly disagree, running with the contradictory title: Popping Claims of an Australian Bank Share Price ‘Bubble.’ So…
Why the Federal Reserve is Digging an Ever-Deeper Hole
Apparently, policymakers at the Federal Reserve are having second thoughts about the wisdom of open-ended quantitative easing (QE). They should. Not only has this untested policy experiment failed to deliver an acceptable economic recovery; it has also heightened the risk of another crisis. The minutes of the January 29-30 meeting of the Fed’s Federal Open…
Is Rent Money, “Dead Money”?
By Wealth Foundations Rent is the price of housing accommodation The home building industry often promotes to potential young home buyers that rent money is “dead money” i.e. money down the drain. It encourages them to stop paying rent and, instead, use the money to pay off the mortgage on their own new home. I…
Beware Of Mining Stocks With Too Much Debt
Many Aussie miners are sitting on scary levels of debt – so when Fortescue Metals went into a trading halt over its burgeoning debt less than two weeks ago, investors in mining-related stocks watched closely. The day before the trading halt, Fortescue’s share price fell considerably and the ASX queried the drop. Some speculated that…
Does Capital Raising Sound the Bell to SELL?
As the financial crisis plays out, more Aussie companies are going to the market to raise capital. The question is: if a company goes to the market to raise capital, does that sound the bell to sell? In theory, capital raisings to fund future growth and expansion should be a good thing. A capital raising…
Gold stock recovery underway
Gold stocks have recovered sharply following last month’s panic-like capitulation plunge. But this embattled sector still remains incredibly cheap relative to prevailing gold levels, which drive gold miners’ profits and hence ultimately their stock prices. While it is very challenging psychologically to buy in deeply-out-of-favor sectors, the panic-like gold-stock bargains out there today are simply…
The Dingoes of the ASX 50
In 1602 a Dutch company instituted the practice of issuing ownership shares in the company in exchange for capital needed for expansion. The practice caught on and in 1611 the world’s first stock exchange was formed in Amsterdam. Approximately 15 minutes after the market opened for business, some Dutch math wizards began a search that…
How the US is becoming a 3rd world country
By Ron Hera, Hera Research, LLC The United States is increasingly similar to a 3rd world country in several ways and is accelerating towards 3rd world status. Economic data indicate a harsh reality that obviates mainstream political debate. The evidence suggests that, without fundamental reforms, the U.S. will become a post industrial neo-3rd-world country by…
Developing a trend-following system
I became more interested in moving averages when I was looking into developing a trend-following system, since moving averages help identify trend reversals. Therefore, I took a closer look at the differences between the different types of moving averages and the possible benefits of using one versus another. For those of you new to trading,…
