SMSF Investment StrategiesSharing Simple Strategies for Self Managed Super Funds
Three can get you two
“Debt will get you in trouble” is a strange admonition when it comes a guy who helps to lend $1 trillion of it. This was the opening line used by Bill Gross, Managing Director of PIMCO the world’s largest bond fund in his Investment Outlook for June 2010.
In this issue, he talks about the dangers [...]
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 [...]
Contagion has begun
Back in February 2010 when I wrote my first blog post about the Greek debt crisis, Australian financial advisers were assuring everyone that this crisis is self-contained and unlikely to spread through the global financial system. When the Greek crisis started, everyone assumed that Greece would get bailed out and that would be end of [...]
Slow motion train wreck picks up speed
The Greek debt crisis has been compared with a “slow motion train wreck”. Everyone can see that the fiscal spending in Greece is unsustainable and a fatal crash will result if action is not taken soon. You don’t need to be a financial expert to know that if you constantly spend more than you earn, [...]
Bank for International Settlement report does not bode well for world economy
I normally don’t write blog posts on the weekends but I feel I should get this post out sooner rather than later because some of the information may be time critical.
Warning: this is long blog post with few pictures.
A friend of mine recently asked me why I was still bearish about the stock market. Like [...]
Rising bond yields – any cause for concern?
On Monday 5 April 2010, the 10 year US treasury bond yields crossed 4% for the first time since June 2009 (see chart of $TNX below). Bulls believe this is a good sign. Bond yields typically rise and bond prices fall when the economy improves because investors will pull money out of safe, government-backed bonds [...]
Forget Greece, Dubai will default first
While all eyes are focused on Greece, Dubai is quietly trying to work out a deal to restructure USD 22 billion of debt that is coming due soon. Dubai World rocked global markets on Nov 25, 2009 with a request to delay repaying $26 billion in debt linked to its main property units Nakheel [...]
Should Australian investors worry about the European debt crisis?
Apparently not, if you read the local financial news. While the problems with Greece continue to dominate the headlines on international news portals, our headlines are focused on Australian company earnings. Yesterday the stock market celebrated our low unemployment rate and Rio Tinto’s great earnings report. After the Australian market had a 9% correction which [...]
