If there is one lesson to be learned after the mess of the 2007 economic crisis and market crash is that economic austerity policies is the definition of economic insanity. Self inflicted wound Under the guise of a potential debt crisis of its own making. Economic policy makers across the major economies like the European […]
Stock Market Crash – It is never different this time
Cuases of Stock Market Crash Today The most dangerous words in finance is “its different this time”. Markets are driven by psychology as much as the underlying value of the companies. The names change, the circumstances change but fear and greed is constant in the stock market bubbles and crashes throughout history. Stock market crashes happen more often […]
Helicopter Money – Bonds are a sell of a lifetime
Cutting interest rates has been a key tenant of the monetary policies around the globe since the financial crisis. As a result the overnight cash rates of major economies around the globe have been near zero for more than half a decade. Interest rates are near zero across the major economies and there is simply no more […]
China Economic Data – 3 Articles You Need to Read
In the simplest sense we carry out speculation on day to day basis. But our speculation is based on a investment thesis which is ultimately confirmed by data. We are becoming increasingly alarmed in the economic situation in China give the recent development. These include Further deterioration of Chinese disclosure on economic statistics. The level of disclosure […]
3 Charts that shows Australia Unemployment Rate by State
Australia Unemployment Rate Unemployment rate is defined as proportion of working age population that are actively looking for work but is not currently employed. The current Australia employment rate is 5.8%. This is based on a trended series of unemployment data provided by ABS. The data is released monthly. The unemployment rate is closely interrelated with economic growth, […]
The Inflation Rate Australia Need
Why is Inflation Important? Inflation is important because it provides an indicator of the change in price of products and services in the economy. It is a defacto measurement of cost of living for a majority of population. A low inflation rate is preferred over a high inflation because high or hyper inflation are indicator […]
LNG Price
The Australia Liquefied Natural Gas industry underwent massive capital investment worth up to $80 billion which are all coming online between 2015 and 2017, making Australia an export powerhouse. LNG Train Exhibit below shows the steps from natural gas production, liquefaction step and re-gasification. LNG Pricing Prices of LNG sold from Australia are under long term contract linked […]
Current Iron Ore Price Chart
Earlier this year Iron ore price today had the largest one day move ever. It rose nearly 20% in a single day and took the year to date gains in the price to more than 40%. Since then it has had a minor pull back. The price chart below shows the commodity year to date. It […]
Is the boom over for the Big Four Banks?
Investors love Australia banks due to the income protection it provides. Australian banks, mostly consist of the big four Australian Banks make up the latest sector in the ASX 200. We are bearish on Australian banks because these are just leveraged play on the broader economy. Sector specific and broader macro risks on the horizon […]
Deutsche Bank Deathwatch – Too big to bailout
Performance of Deutsche Bank has been dismal since the financial crises. While the US banks deleveraged. Europe was marred in one crises in Greece after another. ECB focus on the peripherial banks left DB a ticking timebomb. The market is not being kind to Deutsche Bank with the share price this year has breached the […]