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5 Dec 2017 (AFR) – How Bell Potter trader Damien Rodr bid to drive up DirectMoney share price

[COMMENT: Now this is an interesting article for investors and traders, because it describes the possible underlying actions that some people might undertake to move share prices – compelling reading.] (5 December 2017, AFR, p13, by Misa Han) ‘Bell Potter trader Damien Rodr bid a fraction higher to drive up the share price of a … Continue reading

16 Nov 2017 (AFR) – ‘Irrational exuberance’ is back as fund managers keep buying: BoAML

(16 November 2017, AFR, p36, by Philip Baker) ‘Trying to work out what the real big worry is in the sharemarket is always a tricky business. But the findings from the latest survey of global fund managers by Bank of America Merrill Lynch give investors two standout choices. One, is the record-high number of fund managers … Continue reading

11 Nov 2017 (AFR) – Property v shares: time to change the conversation?

(11 November 2017, AFR, p29, by Patrick Commins) ‘At your next barbecue will your friends and neighbours be boasting about how much money they’ve made in property, or shares? Still likely the former, but maybe, and increasingly so I would argue (and hope), the latter. For the first time in six months the annual total … Continue reading

2 Nov 2017 (AFR) – Ten years on investors still waiting for new record high

(2 November 2017, AFR, p40, by Philip Baker) ‘Ten years ago when the benchmark S&P ASX 200 index peaked at 6828.7 on 1 November 2007, it wasn’t much of a stretch to think that 7000 was just around the corner. How wrong can you be. For sure the index had taken a tumble to just … Continue reading

21 Oct 2017 (AFR) – Why Wall Street’s ‘Black Monday’ is a red herring

[COMMENT: Here is a good article describing some of the events of the infamous markets crash of 1987 – Black Monday in the US and Black Tuesday in Australia.] (21 October 2017, AFR, p29, by Patrick Commins) ‘ “By the time we got to the crash, it was clear that equities were very expensive relative … Continue reading

2 Sept 2017 (AFR) – What 30 years of market gyrations can teach investors

[COMMENT: Boy oh boy! I would not normally post a news article like this one; but I have to say that I disagree with almost everything that is said in this story. “Hold your line” – Rubbish!!  “Real estate…” – It might be best to avoid it all together. “Choose equities long term…” – Crap!! … Continue reading

2 Sept 2017 (AFR) – Dividends make way for growth as capital becomes focus of ASX 200

(2 September 2017, AFR, p24, by: Jonathan Shapiro, Vesna Poljak) ‘Shareholders have intensified their focus on capital management as a period of under-investment comes to an end, boosting prospects for growth but at the expense of dividends. Corporate Australia increased its payout to shareholders via dividends last financial year, with S&P/ASX 200 companies distributing $69 … Continue reading

28 Aug 2017 (AFR) – Members should be told if their super fund is under par

[COMMENT: Really? Some superannuation funds don’t perform? Well, that’s not very good…] (28 August 2017, AFR, p19, by Sally Patten) ‘Savers remaining in poor-performing superannuation funds for long periods is a key problem facing Australia’s $2.3 trillion retirement savings sector, says the country’s biggest industry super scheme, which argues that reducing the number of individuals … Continue reading

26 Aug 2017 (AFR) – Pay Day – Why Transurban, Sydney Airport and Spark are dividend winners

(26 August 2017, AFR, p28, by Philip Baker) ‘Every reporting season investors worry about which company in their portfolio will take the knife to their payouts, but so far it’s been a dividend bonanza.’ ‘It’s not meant to be this way. When it comes to dividends it’s usually the banks, industrials and infrastructure stocks that … Continue reading

Short position reporting to ASIC

(23 August 2017) – Following up on a news story in today’s AFR about reporting of short positions (stocks that are sold short), for the investors and traders who are interested in seeing a list of shorted stocks, ASIC maintains a daily list of this information as reported to it by the sellers. (Thank you … Continue reading

12 Aug 2017 (AFR) – The Aussie sharemarket has an earnings problem

(12 August 2017, AFR, p31, by Patrick Commins) ‘Five months ago I asked whether valuations “matter any more”. Prices across assets have been sky-high for a long time, but keep heading higher. The answer was in that in one important way they do, and in another important way they don’t. Starting with the latter, they … Continue reading

9 Aug 2017 (TheAge,MONEY) – IPO warning: more than half of floated companies are underwater a decade later

[COMMENT: The conclusion in this newspaper article is very similar to what I have reported previously on my Toolbox IPO web page, along with many share price charts to graphically show how an IPO stock performs over time.] (9 August 2017, The Age MONEY supplement, p2, Scott Phillips, The Motley Fool) ‘You’ve heard the hype. … Continue reading

3 Aug 2017 (AFR) – Investor complacency has an eerie ring to it – Previous bull runs demonstrate dangers of complacency

(3 August 2017, AFR, p21, by John Plender) ‘The CBOE Vix index of implied equity volatility – the so-called fear gauge – last week hit the lowest point since its inception. To many, this will seem altogether perverse in the light of a welter of uncertainties hanging over the market. These range from worries over … Continue reading

2 Aug 2017 (AFR) – Apple, Google take down binary options apps at ASIC’s request

[COMMENT: Now this is an interesting article for retail investors who might want to trade in such financial instruments. (2 August 2017, AFR, p17, by James Eyers) ‘Australia’s corporate regulator says it has convinced two of the world’s largest technology companies, Apple and Google, to remove applications that offer unlicensed financial products to customers from their … Continue reading

2 Aug 2017 (TheAge) – Retail strips struggle but investors don’t care

(2 August 2017, The Age, BusinessDay, p25, Simon Johanson) ‘Retailers in Melbourne’s suburban shopping strips may be under siege but nobody has told investors. While high street retailers across the city struggle with historically high vacancy rates, wannabe landlords are bidding up retail assets and seizing shops on tight yields at well-attended auctions.’ Read more … Continue reading

31 July 2017 (TheAge) – $1b of short interest in retail stocks faces earnings season test

[COMMENT: This news story indicates one possible event that might move the local market.] (31 July 2017, The Age, BusinessDay, p18, Vesna Poljak) ‘More than $1 billion of bets against the Australian retail sector will be tested when the earnings season gets under way this week, underlining a difficult year for the stocks with the most to … Continue reading

29 July 2017 (AFR) – Compare how your superannuation fund performed

[COMMENT: As I always do when posting things like this funds performance table, I warn that past performance is no guarantee of future results. It is merely an interesting observation of the past performance of some funds and their own strategies which may change from time to time.] (29 July 2017, AFR, p27, by Sally … Continue reading

26 July 2017 (TheAge,SMH,MONEY) – How to turn $10,000 into a million dollars

(26 July 2017, The Age, MONEY supplement, p2, Marcus Padley) ‘I ask for Stupid Questions in my newsletter and I get them. “I have $10,000 and want to turn it into a million dollars. How do I do it?” You’re thinking “How Stupid” but it’s actually a really good question. So let’s try and answer … Continue reading

20 July 2017 (TheAge) – BAML fund manager survey shows tech stocks off, US overvalued

(20 July 2017, The Age, BusinessDay, p25, Jessica Sier) ‘They might be the most exciting companies in the world, but a majority of fund managers sold out of global internet stocks in July, saying they are too expensive and US equities are broadly overvalued. A survey of 179 fund managers, with an accumulated $US525 billion … Continue reading

20 July 2017 (TheAge,SMH) – Super returns add $140b to national retirement savings pot

[COMMENT: My usual caveat must accompany this news article – That the reporting of the performance of any fund needs to be taken very carefully. The start and end date of the study period can make a big difference to the returns over the period (some people call it creative accounting). Also, that the returns … Continue reading

18 July 2017 (AFR) – ASIC’s Greg Medcraft warns hybrids are ‘ridiculous’ for retail investors

(18 July 2017, AFR, p1, by Tony Boyd) ‘Billions of dollars of hybrid securities issued to retail investors by the major banks will eventually cause problems for the financial system, according to outgoing chairman of the Australian Securities and Investments Commission Greg Medcraft. In an interview with The Australian Financial Review to mark his six-and-a-half … Continue reading

21 June 2017 (TheAge) – Macquarie bank faces class action over advice on worthless Brazilian mine project

[COMMENT: Whether this purported class action proceeds or not, the allegation that is described in this news article is an interesting eye-opener for retail investors, because it might be possible for any market participant to engage in such conduct. The various Holywood movies of recent years portray that such things might really happen.] (21 June … Continue reading

21 June 2017 (AFR) – Watch out Warren Buffett, value investing is dead

(21 June 2017, AFR, p32, by Philip Baker ) ‘Warren Buffett, and all the armchair Warren Buffetts out there, you’ve been warned. There is so much change going on in the world that value investing, as a strategy, is on its way out. Buying stocks with the lowest valuations is just not working. It’s a major reason why so … Continue reading

19 June 2017 (TheAge) – Last week for tax-loss selling before the July bounce

(19 June 2017, The Age, BusinessDay, p18, Jessica Sier) ‘Tax loss selling has hammered some shares over the past two months, but the strategy is gearing up to have one last wash through the ASX this week. The popular strategy involves disposing of underperforming shares as well as crystallising a loss to offset any capital … Continue reading

19 June 2017 (AFR) – Robots are cashing in – for now; The machines taking over Wall Street

(19 June 2017, AFR, p28, by Philip Baker) ‘There was a time when what happened in the sharemarket had more to do with investor emotion than anything else. But not so much these days. The machines armed with making all the investment decisions these days don’t have any emotion, don’t get nervous and don’t worry … Continue reading

19 June 2017 (AFR) – Positive skew that exists in equity markets – Most sharemarket gains come from a very small subset of stocks

[COMMENT: There are two thoughts that come to mind here. Firstly, the investment period quoted below of 90 years is not relevant to many retail investors, and it is easy to cherry pick a start and end date for comparative purposes to suit the hypothesis. But secondly, and of more interest, is the notion that … Continue reading

17 June 2017 (AFR) – Exchange traded fund opportunities and risks

(17 June 2017, AFR, p29,  by Tony Featherstone) ‘Australia is a long way from having “biblical” exchange traded funds (ETFs), as the US does, that exclude companies that support lesbian, gay, bisexual or transgender rights. But a rush of new ETFs in this market is creating controversy. Local issuers expect a massive conversion of investors … Continue reading

16 June 2017 (TheAge) – Record 44pc of fund managers say equities are overvalued: BoA Merrill Lynch

(16 June 2017, The Age, BusinessDay, p25, Myriam Robin) ‘A record 44 per cent of global fund managers believe sharemarkets, particularly those in the US, to be overvalued after years of overstimulative monetary policy, according to a monthly Bank of America Merrill Lynch survey. In the note, titled “Fed up with Bubbles”, three quarters of … Continue reading

16 June 2017 (TheAge,SMH) – Superannuation deadline sees ‘huge inflow of cash into equities’, says Richard Coppleson

(16 June 2017, The Age, BusinessDay, p25, Myriam Robin) ‘Voluntary contributions into superannuation funds doubled between April to May, and are so far having another strong month as investors race to beat a deadline on low-tax superannuation concessions, according to one of the country’s largest superannuation managers. Superannuation experts said there was no doubt this … Continue reading

15 June 2017 (AFR) – Credit Suisse sees eight ASX stocks activists should target

[COMMENT: The debate continues about active versus passive funds management. It seems as though there is something to be said for an active investor who remains nimble. But do note the details of the accompanying bar chart “Returns for different hedge fund styles (%pa)” (From 2005 till now, and Past 10 years) – with Activist, … Continue reading