Billion Dollar Companies with Price to Earnings Ratios Under 10
The stock market is not the economy. Many market experts would strongly object to the validity of that adage, pointing to multiple times throughout investing history when stock markets have declined in the face of economic slowdowns or uncertain circumstances. However, a recent opinion piece making the rounds of Australian financial news websites entitled the…
E Commerce Stocks in a Post Pandemic World
Although the Australian economy is showing scattered signs of life, the overall picture remains mixed, according to the chief economist at CommSec. While the RBA kept interest rates at the lowest level in our history – 0.25% – the bank sees a bleak future for unemployment, with the rate to rise to 10% by year…
Taking a Chance on Upcoming IPOs
The optimism over a possible quick economic turnaround, the v-shaped recovery, took another turn for the worse on the morning of 30 July in the US. Although that country’s annualised GDP after the close of the second quarter came in better than expected at a drop of 32.9% versus a forecasted 34.7%, that number along…
Under the Radar Stocks
Former chairman of the US Federal Reserve, Alan Greenspan, is credited with coining the term “irrational exuberance” in a speech in the midst of the early days of what would morph into the dot.com bubble. The term is now widely used to describe “widespread and undue economic optimism.” Irrational exuberance can seduce investors into ignoring…
Junior Gold Explorers to Watch
On occasion market experts have anointed wild swings in market volatility as a market with a “split personality.” It would be hard to argue that market movements since the potential scope of the COVID-19 Pandemic began to become obvious in mid to late February of 2020 has been anything but volatile. On 19 February markets…
Is Construction and Infrastructure Spending Coming?
Early in the first trading week of June the ASX 200 rallied yet again to hit its highest close since the 6th of March, with the 3 June closing at 5,941.6, up 1.83% from the previous day. The following day our market hit a new 13 week high. Investors appear eager to accept the positive,…
Diversified Financials in a Post-Pandemic World
“Investors Should Brace for another Market Sell-off, Analysts Warn” That was the title of an 11 May article appearing in thenewdaily.com.au. Given the bullish tone of late in the ASX in particular and global markets in general, this appears a minority sentiment and an outright contrarian view. Within the article lies a kernel of common…
Agriculture Niche Players to Watch
In a simpler world, “reality” would present a single face. It is arguable whether the world has ever been “simple,” but few could debate the complexities of the times in which we live. Today reality can present multiple faces, further distorted by perceptual filters. On the morning of 21 May in the US, where trends…
A Contrarian View of the Buy Now Pay Later Sector
Bullish investors gleefully ploughing money into global stock markets were given a wakeup call on the morning of 13 May when a leading US-based hedge fund manager called the current stock market the most overvalued since 1999 right before the dot.com bubble popped. This was the second contrarian warning from a key US player this…
Renewable Energy in the Post COVID-19 Era
All over the world countries are already or soon will be dipping their toes into the process of lifting “stay at home” efforts. It seems the global consensus, which may be in error, is that COVID-19 is slowly winding down, opening the door to efforts to begin reviving economies crushed by the lockdowns. The financial…
