SMSF Investment StrategiesSharing Simple Strategies for Self Managed Super Funds
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 [...]
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 [...]
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 [...]
Are we rich or do we just look rich?
Stock markets across Europe tumbled more than 3% last night on the news of debt problems at Dubai World, a government investment company in Dubai. Banks who are the major creditors for Dubai World were the worst hit, with the Royal Bank of Scotland share price falling by 8%. Yesterday, the Shanghai stock market also [...]
Meredith Whitney: Sell the banks
I noticed early this morning that some banks in the US finished in the red despite a very bullish day where the major market indices made new highs. When the Australian markets opened later in the morning, I noticed that the major Australian banks also registered big drops in price. At the time of writing, [...]
What is the true state of the banking industry?
There seems to be a lot of good news about the banks in the popular media lately, both locally in Australia and in the US. Bank earnings have exceeded analyst expectations and some of the banks have even managed to pay back the government bailout funds. Consequently, the stock price of the big banks have [...]
