Australian investors love Australian banks as they are known to be some of the most consistent dividend income and relative level of income protection it provides. The fall in the big 4 share price recently is an ominous sign for the market and the Australian economy in the future. The big four major banks historically made up […]
Which Australia Main Exports Are At Risk to China’s Will?
Australia-China relations are at a nadir and China has been gradually culling domestic demand for Australia’s main exports. China is Australia’s largest market for a number of export sectors. China is the world’s factory but with Australia it is one of the only few countries whereby it has a trade deficit. China’s insatiable demand for […]
You can see a new bull market in the iron ore price chart
Iron ore has proven to be one of the resilient commodities in face of market volatility after Covid. This can be attributed to the V shaped economic recovery in China where the 2020 steel production was above 2019 and the prior 5 year trend. The price chart of the iron ore price shows the price […]
The 3 Charts Show Another US Bubble in Tech Stocks
The market reacted visciously to the onset of Covid-19 where in March 2020 the US market saw one of the fastest declines into bear market since the 1920s. Since then it also saw one of the fastest recoveries where the Nasdaq returned to its pre-Covid level barely 3 month later in June 2020. It is […]
Austerity definition of economic irresponsiblity
If there is one lesson to be learned after the mess of the 2007 economic crisis and market crash is that economic austerity policies is the definition of economic insanity. Self inflicted wound Under the guise of a potential debt crisis of its own making. Economic policy makers across the major economies like the European […]
Stock Market Crash – It is never different this time
Cuases of Stock Market Crash Today The most dangerous words in finance is “its different this time”. Markets are driven by psychology as much as the underlying value of the companies. The names change, the circumstances change but fear and greed is constant in the stock market bubbles and crashes throughout history. Stock market crashes happen more often […]
Helicopter Money – Bonds are a sell of a lifetime
Cutting interest rates has been a key tenant of the monetary policies around the globe since the financial crisis. As a result the overnight cash rates of major economies around the globe have been near zero for more than half a decade. Interest rates are near zero across the major economies and there is simply no more […]
China Economic Data – 3 Articles You Need to Read
In the simplest sense we carry out speculation on day to day basis. But our speculation is based on a investment thesis which is ultimately confirmed by data. We are becoming increasingly alarmed in the economic situation in China give the recent development. These include Further deterioration of Chinese disclosure on economic statistics. The level of disclosure […]
3 Charts that shows Australia Unemployment Rate by State
Australia Unemployment Rate Unemployment rate is defined as proportion of working age population that are actively looking for work but is not currently employed. The current Australia employment rate is 5.8%. This is based on a trended series of unemployment data provided by ABS. The data is released monthly. The unemployment rate is closely interrelated with economic growth, […]
The Inflation Rate Australia Need
Why is Inflation Important? Inflation is important because it provides an indicator of the change in price of products and services in the economy. It is a defacto measurement of cost of living for a majority of population. A low inflation rate is preferred over a high inflation because high or hyper inflation are indicator […]
LNG Price
The Australia Liquefied Natural Gas industry underwent massive capital investment worth up to $80 billion which are all coming online between 2015 and 2017, making Australia an export powerhouse. LNG Train Exhibit below shows the steps from natural gas production, liquefaction step and re-gasification. LNG Pricing Prices of LNG sold from Australia are under long term contract linked […]
Deutsche Bank Deathwatch – Too big to bailout
Performance of Deutsche Bank has been dismal since the financial crises. While the US banks deleveraged. Europe was marred in one crises in Greece after another. ECB focus on the peripherial banks left DB a ticking timebomb. The market is not being kind to Deutsche Bank with the share price this year has breached the […]