Category — Banks
May 21, 2013 Comments Off
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January 25, 2013 Comments Off
If you wait until an investment has no perceived risk, then you’re buying the investment at a premium…the investment is ‘priced for perfection’.
Trouble is (and this is the paradox of investing) when an investment reaches this point, where it appears nothing can possibly go wrong, that’s when things can go wrong. And when that happens, because it’s so unexpected, it can result in big price moves…
Why CBA Shareholders Should Heed This Lesson
That’s why we offer caution to investors in Commonwealth Bank [ASX: CBA]. Two weeks ago the newspapers went bonkers at the news CBA was now valued at $100 billion.
As the Sydney Morning Herald reported:
‘The bank’s shares rose to its highest-ever value — $63.24 — at the close of trading on Thursday, as the ASX200 reached a 19-month high and the market continued to rally following the US Congress’ temporary aversion of the “fiscal cliff” crisis.’
That’s got to be good news. As the report continued: [Read more →]
January 19, 2013 Comments Off
The world’s powerful central banks are playing a very dangerous game. Trying to manage inflation expectations while pursuing downright inflationary policies has caused, and is set to cause, a great deal of volatility in the market this year.
But as I said on Monday, there’s good money to be made for those who can stay a couple of steps ahead of the central planners.
Today I want to show you how central banks will try to pull the wool over your eyes this year. And what you can do to make sure you stay ahead of them.
How Central Banks are the Puppets of PoliticiansLet’s get one thing straight from the start. Though most central banks claim to be independent, they are nothing of the sort.
When it comes down to it, the politicians call the shots. And the politicians generally favour what’s known as ‘dovish’ policy. That is low interest rates and all the easing-type stuff we’ve come to expect. [Read more →]
January 14, 2013 Comments Off