Why we don’t hold bank stocks

Australian retail investors love financial stocks. Almost everyone we know who own stocks have shares in one or more of the big four banks. The most common question we get asked is “Should I buy XYZ bank shares?” especially after a stock market correction because prices appear cheap. Our answer is always the same, which [...]

A safe bear market strategy (only if you like the greeks)

In August 2009, I wrote about two strategies that SMSFs can use to profit in a falling market, which is to buy put options or to buy shares in inverse ETFs. The market has been falling for the past few weeks. Both these strategies can work well if the market continues to fall but you [...]

Is China a leading indicator? Part 5 – China enters bear market

China is officially in a bear market as the Shanghai Composite index fell over 20% from the highs of 2009. From the chart above, we can see that the index has clearly broken below the trading range noted in my last post Is China a leading indicator? Part 4 on Mar 16. China has been [...]

All Ords at 4500 again – where to from here?

The Australian All Ords is testing 4500 again. The last time it touched this level was in February 2010 and the consensus by stock experts was “Hold your nerve, its time to jump in“. That article quoted market heavyweights like CommSec chief economist Craig James, AMP Capital Investors head of investment strategy Shane Oliver and [...]

A deadly bearish big picture

// That’s the headline Robert Prechter gave to his just-published Elliott Wave Theorist. You can read that entire 10-page issue right now — for FREE! Continue reading to learn more or get it now. Headlines are usually about what happened already, but Prechter’s headline is about what happens next. It goes beyond providing information. Yes, [...]

Too interconnected to fail

The above is a beautiful graphic from The New York Times article Europe’s Web of Debt which demonstrates the European debt crisis very succinctly. As you can see European debt is highly interconnected. If one country defaults, many others in the European Union will be affected. The size of the circles and the width of [...]

Big week for super

The long awaited government response to the Henry Tax Review was finally announced yesterday and the proposed changes for super were not as bad as we expected. For us personally, there was no extra benefit but I do think that it will benefit most Australians. Some of the main changes in government policies announced this [...]

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