Fundamental Analysis

The US Financial System Is In Danger Of Collapsing, Researcher Warns

By Ron Hera, Hera Research, LLC Famed Austrian economist Ludwig von Mises wrote in his seminal work, Human Action (originally published by the Yale University Press in 1949), that “There is no means of avoiding the final collapse of a boom brought about by credit expansion.  The alternative is only whether the crisis should come…

Why Financial Repression Will Fail

By Ron Hera, Hera Research, LLC Excessive leverage and risk in the financial system, e.g., using customer funds to speculate, never ends well.  Stock market crashes, bank and investment firm failures or economic recessions are all potential consequences.  Following the failure of the United States to regulate over the counter (OTC) derivatives and the repeal…

5 Gold Miners for an Uncertain Market

On 16 December 2015 the US Federal Reserve raised interest rates for the first time since 2006, sending the price of gold down to a six year low of $US 1,050 per ounce.  The share prices of ASX Gold Miners across the board dropped along with the decline in the price of the metal.  The…

National economy grows but some non-mining states in recession

By Sunanda Creagh, The Conversation The Australian economy grew 0.6% last quarter but Victoria, South Australia, Tasmania and the ACT are now technically in recession, according to new Australian Bureau of Statistics data. The new figures illustrate the extent to which the mining states like Western Australia and the Northern Territory are racing ahead while…

Borrowing to invest a risky solution to a savings problem

By Wealth Foundations Borrowing to invest has appeal to some high income professionals The Global Financial Crisis clearly revealed the dangers of attempting to accelerate wealth accumulation by borrowing to invest. Many were left owing considerably more to their lenders than their investment assets were worth. However, for many high income earning professionals in their…

Explainer: what are safe haven investments?

By Richard Heaney, University of Western Australia Safe haven investments are investments that provide a low level of risk during periods of extreme economic uncertainty. The problem is that a safe haven investment is a safe haven investment until it is no longer a safe haven investment. There are a number of assets that are…

Fear the no-grow zone: has technological innovation reached its final frontier?

By Fabrizio Carmignani, Griffith University The economic profession lacks a unified theory of economic growth. Textbooks and academic journals contain a plethora of models and paradigms which generate different (and sometimes contradictory) predictions about the mechanics of the growth process. Amid this intellectual confusion, an element in common to the bulk of modern growth models…

8 Defensive Stocks For Yield And Growth

The ASX 200 Index has struggled for years – failing miserably to match the performance of the US based S&P 500 over the past five years.  Some investors have jumped ship while others have waited patiently for good times to returns.  Since June this year conditons have improved somewhat.  Here is a six month price…

Accountants Are Not Always People You Can Trust

Something seems out of whack when you can buy a new push bike for your child for the same price it costs an accountant to leave ‘please call me back’ messages on your voicemail. Push bike versus empty voicemail messages? Hmmm…which offers more value? Something seems out of whack when an accountant can bill indiscriminately…

Economics and the brain: how people really make decisions in turbulent times

By Paul Harrison, Deakin University In a 2008 paper on neuroeconomics, Carnegie Mellon University economist George Loewenstein said: “Whereas psychologists tend to view humans as fallible and sometime even self-destructive, economists tend to view people as efficient maximisers of self-interest who make mistakes only when imperfectly informed about the consequences of their actions.” This view…

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