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(29 December 2017, Sydney Morning Herald, online, Vesna Poljak) ‘The Australian sharemarket advanced 7.1 per cent in 2017, posting its second straight annual rise, supported by commodity producers and high-flying growth stocks. On Friday, the last trading day of the year, the S&P/ASX 200 Index fell 23 points or 0.4 per cent to close at … Continue reading
(27 December 0217, The Age, Business, p21, Carolyn Cummins) ‘Industrial property will be one of the busiest in coming years as demand increases for storage and distribution of goods bought on the internet. There will also be a rise in demand for warehouses from the transport and logistic firms, such as DHL and FedEx to … Continue reading
(27 December 2017, The Age, p4, Eryk Bagshaw) ‘Another year, another Boxing Day sales “record”. If it wasn’t, we would really be in trouble. The $2.4 billion sales prediction from the Australian Retailers Association is in reality a measly improvement on the 2016 results, as is the $17.8 billion figure for the entire post-Christmas period. … Continue reading
(23 December 2017, CNBC online) ‘Coinbase, one of the biggest bitcoin marketplaces in the U.S., said Friday that trading was up again after being down for more than two hours amid a price rout in cryptocurrencies.’ <snipped…> ‘Bitcoin traded about 14 percent lower near $13,283 on Coinbase as of 2:22 p.m. ET. Earlier, the digital … Continue reading
(23 December 2017, AFR, online, by Sarah Turner and Vesna Poljak) ‘The ASX ended the last session before the Christmas break on an upbeat note, with traders choosing to pick up miners and banks ahead of the holiday. The S&P/ASX 200 index climbed 9 points, or 0.2 per cent, to 6069 while the broader All … Continue reading
[COMMENT: This article touches on some of the cognitive biases that can play havoc with the way that investors think, and which influence investment decision making. It is very useful for investors to understand much more about cognitive biases.] (22 December 2017, AFR, p49, by Patrick Commins) ‘The year 2017 for investors is one of … Continue reading
(22 December 2017, AFR, p13, by John Kehoe) ‘Donald Trump and Republicans accomplished what few Washington observers, until recently, thought was possible in 2017 – a significant and brisk overhaul of America’s tax code for the first time since 1986. Trump desperately needed a policy victory to finish the year to lift his languishing approval … Continue reading
(22 December 2017, AFR, p13, by John Kehoe) ‘The US Congress on Thursday (AEDT) passed the biggest shake-up to the tax system in three decades, including slashing the corporate rate to 21 per cent, to deliver President Donald Trump the signature legislative achievement of his first year in power.’ Read more at AFR.com (might need … Continue reading
(21 December 2017, AFR, p13, by Sue Mitchell) ‘Steinhoff International’s $1 billion Australian business could be split up and sold off if banks owed €10.7 billion ($16 billion) ignore the company’s pleas for support and pull the plug. Industry players believe Steinhoff’s Australian furniture businesses Freedom, Fantastic Furniture and Snooze, and department store chains Harris … Continue reading
(21 December 2017, The Age, Business, p25) ‘Having subdued Australia’s housing market frenzy, Reserve Bank governor Philip Lowe now has to steer his way through the hangover. Despite being saddled with record household debt and wretched wages growth, Australia’s economy is showing signs of picking up steam, with hiring on a tear and firms investing. … Continue reading
(21 December 2017, AFR, p16, by Sue Mitchell) ‘Online shopping has grown at the fastest rate in two years, fuelled by Amazon’s Australian launch and global online shopping events, underlining the challenges facing traditional bricks and mortar retailers. According to new Commonwealth Bank credit card data, online spending jumped 20 per cent in the six weeks to December … Continue reading
[COMMENT: This news story highlights some of the risks involved with international trade.] (21 December 2017, AFR, p10, by Matthew Miller) ‘Several current and former KPMG partners are facing contempt proceedings in a Hong Kong court, as liquidators for a failed US-listed Chinese company step up their action against the auditor over its refusal to … Continue reading
(21 December 2017, AFR, p9, by Michael Heath) ‘Having subdued Australia’s housing market frenzy, governor Philip Lowe now has to steer his way through the hangover. Despite being saddled with record household debt and wretched wages growth, Australia’s economy is showing signs of picking up steam, with hiring on a tear and firms investing. The … Continue reading
(21 December 2017, AFR, p3, by Vesna Poljak) ‘Fund managers are watching the efficacy of sweeping US tax cuts to see whether companies use the windfall to invest in new projects or revert to buying back their own stock to inflate earnings. If US economic growth accelerates upon the passing of tax reform, as it … Continue reading
(21 December 2017, AFR, p1, by: Nick Lenaghan, Larry Schlesinger, James Thomson) ‘The housing boom is being hit by a serious shortage of timber caused by the decline of the local timber industry and increased demand as the US economy recovers and house building ramps up. Home builders in Australia are facing both rising costs and lengthy … Continue reading
(20 December 2017, AFR, p29, by Jessica Sier) ‘Investors flooded into shares on Tuesday, buoyed by new record highs on Wall Street and a broad-based lift in commodity prices. The promise of an impending US tax reform plan has sparked a global risk-on sentiment which has kicked off the Santa rally on the ASX. Both iron ore … Continue reading
(20 December 2017, AFR, p29, by Philip Baker) ‘It won’t be what any stockbroker will tell you so close to Christmas, or any time really, but if history is any guide investors should be wary of Wall Street. Or at least on alert. On Tuesday morning the S&P 500 index posted its 61st fresh record … Continue reading
[COMMENT: Now this is what helps “make the markets” – a healthy disagreement about whether a particular asset’s value should fall or rise. Who to believe? In this case, perhaps this is why many of us don’t trade currencies – because it’s too hard to work out which argument is right.] (20 December 2017, AFR, … Continue reading
(20 December 2017, AFR, p24, by Angela Macdonald-Smith) ‘India, Pakistan and south-east Asia are the only bright spots for coal demand over the next five years amid a bleak outlook elsewhere that creates an overall stagnant market, the International Energy Agency has declared in its latest coal outlook. Despite huge growth in renewable energy, India … Continue reading
(20 December 2017, AFR, p24, by Timothy Moore) ‘The spot price of iron ore lifted on continuing demand for higher-grade material amid China’s winter pollution crackdown. Spot surged 3.7 per cent to $US74.15 a tonne, according to Metal Bulletin. It had risen 2.2 per cent on Friday. The advances mark the latest shift in a … Continue reading
(20 December 2017, AFR, p10, by Angus Grigg) ‘China has launched its long-awaited national emissions trading scheme, taking the first tentative steps towards putting a price on carbon and continuing efforts to clean up its heavily polluted skies. The National Development and Reform Commission (NDRC) unveiled the scheme during a conference call with industry and … Continue reading
(20 December 2017, AFR, p9, by Ben Potter) ‘Australia’s greenhouse gas emissions have increased 5 per cent in the past two years, leaving a huge task for the proposed National Energy Guarantee to meet Paris climate commitments. National greenhouse emissions were 554 million tonnes of carbon dioxide this year, up from 527 million tonnes in … Continue reading
(20 December 2017, AFR, p3, by Su-Lin Tan) ‘Nearly one in four residential properties in the Melbourne council area have re-sold at a loss, Corelogic’s latest Pain & Gain Report shows. The number of loss-making properties in Melbourne has risen from just over 21 per cent a year ago.’ Read more at AFR.com (might need … Continue reading
(20 December 2017, AFR, p13, by: Vesna Poljak, Sarah Thompson) ‘A late rush of deals has fuelled a fresh nine-year high for the Australian sharemarket, setting equities up for their best quarterly return since March 2015. On the heels of fresh record highs on Wall Street where the Nasdaq briefly topped the 7000-point mark for … Continue reading
(20 December 2017, The Age, Business, p23, Patrick Hatch) ‘Retail Food Group’s shares have gone into freefall after the cafe and bakery giant issued a profit downgrade and admitted franchisees were leaving its network. RFG’s shares plunged 25 per cent to $1.98 on Tuesday, after the company said it expected its first-half statutory net profit … Continue reading
[COMMENT: Thinking of “short selling”? Here is some really good information about what can go wrong, and how it’s possible to lose more than your shirt.] (19 December 2017, AFR, p29, by Philip Baker) ‘It’s impossible to go past the surprise takeover as the best way to spoil any short sellers party. For them, it’s … Continue reading
[COMMENT: When investing in the share market, and watching the share price of a stock head to the stratosphere, have you ever wondered how far it might go? And if it might ever run out of steam? here is one example of what can happen – albeit not very often.] (18 December 2017, AFR, p15, … Continue reading
(18 December 2017, AFR, p36, by Matt Townsend) ‘Now that Republicans in Congress have released their final tax bill, two big questions remain. What will companies will do with all that cash, and who will benefit the most? In the joint House-Senate legislation released Friday, which is expected to be voted on next week, the … Continue reading
(18 December 2017, AFR, p34, by Matthew Cranston) ‘Returns from Australia’s top farming properties are now almost three times higher than those from comparable farm operations in the United States according to the latest farmland index compiled by the National Council of Real Estate Investment Fiduciaries.’ Read more at AFR.com (might need AFR login access, … Continue reading
(18 December 2017, AFR, p9, by Michael Bleby) ‘Sydney’s affordability constraints kept auction clearances constrained in the last week of the year, even as Melbourne and Adelaide showed signs of a last-minute Christmas rush to seal deals. Preliminary figures showed 60.8 per cent of the 482 reported auctions in the NSW capital cleared in the … Continue reading
Aussie Sharemarket Barometer 