Business setbacks in the land of the Rising Sun

Posted by cij on Dec 15th, 2008

We quoted Marc Faber at Is the Warren Buffett way dead?:
Above I tried to show the existing connectivity between global liquidity (coming from the US current account deficit), asset markets, and currency movements. To navigate successfully between all these volatile and often unpredictable market movements you need to be a genius.
As we explained before in [...]

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Be prepared for the recession we might have avoided.

Posted by Greg Atkinson on Dec 14th, 2008

Although Rudd stated some weeks ago that Australia would not slide into a recession it seems another one of his forecasts has exposed just what an economic dunce he is. Possibly only Swan can make worse assessments of the state of the Australian economy with Glen “I raised rates too far” Stevens (the Reserve Bank [...]

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Active management coupled with a lack of diversification - lessons from the Brisbane Lions

Posted by Scott Keefer on Dec 12th, 2008

The Brisbane Lions (Australian Football League club) have provided a useful case study of how an active management approach coupled with a lack of diversification leads to an unsuccessful investment outcome.

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Book value in deflationary times

Posted by cij on Dec 12th, 2008

In fundamental analysis of stocks, one of the most important numbers is the book value. Basically, book value is calculated by total assets minus intangible assets (patents, goodwill) and liabilities. Roughly speaking, it is the value you get if you liquidate the company.
But in times of debt deflation, how reliable is book value?
Remember that as [...]

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Listening to ‘wise’ heads can be dangerous

Posted by cij on Dec 12th, 2008

Very often, you may hear the more experienced investors saying things like this
I’ve been investing for the past x number of years. In my experience,

… it is such a time of maximum fear and panic that an investor makes a killing.
OR
… markets eventually recover soon.
OR
… investments in stocks/property/whatever has never disappoint in the long term.
OR
… [...]

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Insurance for kids

Posted by Bronson Financial Services on Dec 11th, 2008

Did you know 1,055 young Australians aged between one and 19 years died in 2006? One of the leading causes of death for those under 12 was cancer, whereas teenagers are were likely to die from transport accidents.  These sobering statistics are outlined in The Australian Government’s Australian Institute of Health and Welfare’s report Making Progress [...]

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Is the Warren Buffett way dead?

Posted by cij on Dec 10th, 2008

In a recent interview with Marc Faber, he said that
I think The Warren Buffett approach is dead, and it’s been dead for ten years, and it’s going to be dead for another ten years.
This statement lies in the context of extreme market volatility described in our earlier article, Real economy suffers while financial markets stuff [...]

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Fire Your Bank! Money Tip without the Boring Stuff

Posted by Ask_Josie on Dec 10th, 2008

Not happy with your bank, credit union or building society, but overwhelmed by the thought of canceling and re-activating all those direct debits?  The Government introduced new rules from November 2008 which should make it easier (in theory anyway).  Following is a link to http://www.fido.gov.au/fido/fido.nsf/byheadline/Switching%20bank%20accounts?opendocument#2 which provides a step by step process.
For people who love detail, included in [...]

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China devaluing their currency

Posted by cij on Dec 9th, 2008

A couple of days ago, one of our readers, Zoo said that
Anyone read anything about China devaluing their currency? Just read a rumour that they are telling the USA they may embark on a currency devaluation within the next 14 days.
Four days ago, in this news report,
The [Chinese] central bank has shifted the central peg [...]

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Technical Analysis - Gann Angles on the current Dow Jones Industrial Index DJI

Posted by ozstock on Dec 9th, 2008

This is an interesting week. Not only is the American market set to respond to a major stimulus package, but the Gann angles show that we may be at the cross roads. Before analysing the current DJI graph, please note the following technical details:
- The chart below is a weekly chart. Daily chart are too [...]

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