Chinese New Year ushers in the year of the Rat. But the Coronavirus is going to have an impact on China’s celebrations and world markets near term. Lunar New Year is a significant travel period for 400m Chinese, raising the potential for further spread of the illness. The outbreak of Coronavirus in China has led…
Important news in the US. Belief is building in a new China/USA “phase 1” trade deal. According to media leaks a deal has been made between the US and China. According to mythical sources, the US has offered to cut tariffs by 50% on USD375m worth of Chinese imports. It is also expected that the…
Weekly wrap from Pythagoras Investing
Where economic rationality is expected and not delivered it leads to investment mistakes. This is a key area maths has a role to play – seeing through the noise and getting to the heart of the share price behaviour. Chinas aims are not the same as a Western paradigm. Innovation will bring great change to the captains of industry.
Western commentators and analysts find China troublesome to fathom. This is due to the ‘free market’ prism through which they look through. It is a fundamentally flawed starting position when trying to understand China! This further complicates dealing with China in a Trade War. Cultural Divide There is a Cultural Chasm which is impossible for…
Working with recommendations: Afterpay Touch Group Afterpay isn’t a stock for the faint hearted but it’s great as a case study to illustrate how Pythagoras buy recommendations work. Each buy recommendation comes with an upper price limit which we measure against at the end of the day, using the close price. Where the close price…
Afterpay is a volatile stock which can be profitably traded using maths – with Pythagoras Investing. The maths overcomes behavioural biases and uses price cycles and volatility to profit.
We highlight the parallels of the China-US and Japan-US trade wars. None of this is new and there is a long way to travel yet. Firstly, let’s start in the mid 80s. New York Times, 11 March 1985, page 1 headline “JAPAN INVESTS HUGE SUMS ABROAD, MUCH OF IT IN U.S. TREASURY BONDS”. An enormous…
Pythagoras Investing is a subscription recommendation service in the business of predicting share price behaviour using maths. It is a new way of investing in shares for investors of all experience levels. To assist people to understand how it works we run a paper “portfolio” of 5 stocks using our recommendations. The stocks are Orica,…
Where economic rationality is expected and not delivered due to the east v west cultural divide it leads to investment mistakes. This is a key area maths has a role to play – seeing through the noise and getting to the heart of the share price behaviour.
The US backtracked from the recent Trump “tariff tweets” due to be implemented on September 1. Essentially, Trump admitted that U.S. consumers were bearing the brunt of the impact and decided to delay tariffs, recognizing the negative impact further tariffs would have on the U.S. economy. He has lacked the understanding of the effect of…
China played the currency devaluation card letting its currency slide in value against the dollar, making its goods cheaper abroad and offsetting American tariffs. Its unsurprising that the Chinese are using the currency as a weapon – it has been a mainstay in their armoury. The devaluation of the managed renminbit will absorb the impact…
Trade Wars: Who is the real superpower. Understanding the trade war. The reasons for the trade war between China and the USA. War is war – even if a shot isn’t fired. Alliances – where should Australia consider. Who will be the winner.
What they do? Star Entertainment Group has just downgraded earnings – this blog will explain more about the downgrade and its effect rather than the reasons behind it. The Star Entertainment Group operates The Star in Sydney, The Star Gold Coast and Treasury Casino & Hotel in Brisbane. The Company also manages the Gold Coast…
The RBA rate cut occurred due to economic weakness – rising unemployment, significant underemployment, lack of wages growth and a lack of consumer spending. Hey, this economy isn’t growing. Stimulation is required or we could be considering the R word before long with the main risk being the international trade disputes between the China and…