In the past we see rate cut cycles being positive for stock markets as they signal an impending positive. But there are a few reasons to be watching carefully right now. Rates are so low at 1.25% – there isn’t a lot of room to move if we get into real trouble. We are now…
Trade wars. Rare earths. Lynas and recommendations from Pythagoras Investing showing how complex markets can be simplified by using mathematics.
This week Trump tweeted he would increase tariffs from 10% to 25% on USD500m+ of Chinese goods. Investors are worried that the additional tariffs hamper economic growth causing uncertainty and volatility in the market. US and Chinese trade officials will resume negotiations in Washington this Thursday/Friday to try for a trade deal. The proposed higher tariffs are scheduled…
Franking Credits Are you part of the 4% or 96% impacted by franking credits? Did you know that on average, retirees would need to boost their superannuation balance at the age of 65 by 8% to 9% to make up for not being able to claim franking credits in retirement? Dividend imputation delivers considerable value…
The next up cycle in the stock market … beginning now In our last blog dated 21 November 2018 we wrote about the use of stock market cycles (both long and short) to generate returns. We know that being successful in a volatile market requires awareness of the start and end points of these cycles.…
The next up cycle in the stock market Everyone knows that the stock market works in cycles, both short and long, with the short cycles forming a part of the long cycles. A long cycle is generally regarded as over the course of a year. The 2018 calendar year cycle is a case in point.…
Published in LinkedIn 9/11/2018. In the coming weeks we are expecting a return to higher volatility for the market yet again. In the near term, immediately following further rises, we anticipate another slight drop. For our clients this slight drop will offer some fairly straightforward buying opportunities to accumulate cheap stock before the return to…
Coming out the other side : Pythagoras ramps up buying. Worst over now. On October 11 we warned that we expected this stock market correction to be more elongated but similar to February 2018. Last week we published a blog about the similarities of the February 2018 pullback and our success in investing into tough…
Markets work in cycles and we believe this market correction is no different from previous cycles. Specifically it is quite similar to February 2018 but we believe a little more elongated and deeper (as we wrote about Thursday October 11). The drop in the market in February began in the US market and spread around…
We wrote about the failing democracy of the US and its consequences a year ago – now our concerns are being realised and it is obvious to all. As a result of the NY Times article written on 5 September 2018 entitled “I Am Part of the Resistance Inside the Trump Administration”, Mr Trump now…
Signs of a Global financial Crisis – GFC Some of these signs are already present, some are occurring currently and yet others still developing. Over time we will track the occurrences as they unfold. Whilst I have applied them to Australia, they are equally applicable in the US, Britain and Europe. Our Signs are as…
Stock Market Cycles – what are they, how do they work, and how do you make money from them? Stock market cycles repeat over time but the real trick is in the selling before a fall – if you could only be good at one thing then make it selling! I have spent my working…
When we boil it all down, it was greed and the escalation of greed which was the root cause of the GFC. The re-emergence of a number of Greed indicators show a worrying trend. Some of these are already present, some are occurring currently and yet others still developing. Over time we will track the…
The last 2 months have been tough for shareholders in the major Australian Banks. Their share prices have dropped throughout March and April. Evidence of misconduct presented at the Royal Commission on Financial Services has created uncertainty about the future for some the worlds most profitable banks. Traditional analysts will consider if the Royal Commission…
Pythagoras Trades Santos, again! Over the 3 months to 9 April we recommended buying Santos 18 times. At $0.74 profit per trade that is a staggering total cumulative profit of $13.31 or 13.5% return on capital employed. On 9 April the Pythagoras recommendation was to sell – we thought that was all! But it wasn’t. …