Source: Bloomberg, RBA The above chart uses price from this morning for the 28 September data and as it shows there has only been a slight improvement in the yield curve over the last couple of weeks so really no significant impact on troubled beliefs at this point in time. Overnight the equity markets were …
Tag Archive: Europe
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Sep 26
Sensational Bearish Interview
Found this via Zero Hedge …sensational interview on the BBC with a trader who believes “Goldman Sachs rules the world” and that “this economic crisis is like a cancer, if you just wait and wait thinking this is going to go away, just like a cancer its going to grow and its gong to be …
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Sep 22
Europe equity markets getting smashed…
…and US futures not looking much better. The Euro Stoxx 50 is down 4.4% at the time of writing; UK, German, French, and Spanish equity markets are all down more than 4.3%. The S&P500 futures are down around 1.5% and Australia’s SPI200 is also down around 1%. Plenty of downside risk yet whilst politicians kick …
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Sep 10
A few thoughts on investment strategy for today
With the US heading towards recession and the Euro Sovereign Crisis getting ugly again where to invest one’s funds has never been tougher. Australian bonds yields are around 4%, meaning they are on PE ratio of 25 which compared to local and global shares, which are currently on forward PEs of around 10, are very …
Sep 10
Its pretty much all over for Greece
1 Year Greek Government Bond Yield Source: Bloomberg I know I’m pretty late on this but when your 1 year bond yield is yielding close to 100% you’re absolutely no chance of raising any debt and the market is declaring your default is nigh. Fiscal austerity for Greece will make zero difference to its chance …
Aug 19
Another dodgy market update
Obviously a pretty difficult investment environment at the moment. Markets tanking again overnight and following on in Australia this morning. Watching Billabong drop around 25% this morning demonstrates the benefits of diversification…I’d hate to be an adviser with an overweight Billabong position in my client’s portfolio. Anyway I digress. Volatility in the sharemarkets will continue for many …
Aug 08
Market Panic…dodgy thoughts
Many many retail investors are panicking, withdrawing their funds and shifting into lower risk investments (mostly cash). Advisers and head office staff are looking for communications to calm investors down but unfortunately the current market situation is that there isn’t necessarily a right answer. Whilst I don’t believe the S&P downgrade of US debt is …
Jul 28
European trouble again?
Italy – Germany 10 Year Bond Spread Source: Bloomberg The above chart shows the spread between Italian 10 year bonds and German 10 year bonds. I found it via Paul Krugman’s blog. As Krugman suggests it looks like things are starting to look pretty grim again in Euro land as the spreads are heading towards …
Jun 09
European Bond Yields
I found this table on Calculated Risk and liked it so much I had to have my own…as I’m sicking of looking up other websites to find the latest Euro yields. [table id=1 /] Send article as PDF
May 25
Australian Government Bond Yield Curve…flattening
Not surprisingly the Australian Government Bond yield curve has flattened signficantly over the last month. The longer part of the curve is lower than it has been for much of this year which is typically an indication of less confidence in the economic outlook in our country. On the other hand, the shorter term yields …