A sample text widget

Etiam pulvinar consectetur dolor sed malesuada. Ut convallis euismod dolor nec pretium. Nunc ut tristique massa.

Nam sodales mi vitae dolor ullamcorper et vulputate enim accumsan. Morbi orci magna, tincidunt vitae molestie nec, molestie at mi. Nulla nulla lorem, suscipit in posuere in, interdum non magna.

Share-market roller coaster

Today was one of the strangest days on the share market I can recall. Values have dropped dramatically over recent days and weeks but by early morning today the market had dropped a further (dramatic) 5.5%. By the time the market closed it had increased 6.7% to be up 1.2% on the day! Your scribe bought in at the depth of the decline  – a looseness in the bowels suggested a certain lack of conviction – or perhaps more accurately his sheer terror. In the end I had snapped a few underpriced bargains and the resulting profits (if realised) would have been enough to afford a crate or three of decent Coonawarra shiraz. Of course tomorrow is another day and, in these times, cash has great appeal but, on the day,  I did well. If the world is not to end tomorrow then Qantas for sale at $1-49 seems irresistible. That’s a little less than a quarter of the value in the proposed management buyout a few years back for a carrier which, despite some current transitional problems, remains the major link between 23 million affluent Australians and the rest-of-the-world.

I am struck by the short-sightedness of Australian investors. They sell out great mining and other firms much too cheaply – think of Norths, Western Mining and MIM. At the same time Aussie investors seem incredibly skittish.  The market is at a point where it seems pretty good value just on the basis of yield alone.

Of course I am not offering financial advice – the late rally may be for suckers alone. If there is a further weakening however I’ll buy more.  The market looks to me like a medium term bear but, at current prices, looks dramatically oversold. My guess is that those selling out at current prices will feel sick about doing so in a year’s time.

Update: The market held up today (Wednesday) with strong gains. Am I confident? Not at all – this market is a very scary place.

2 comments to Share-market roller coaster

  • conrad

    Curiously, if you’re into information flow and people’s perceptions of it, the same didn’t happen in HK or Singapore, even though their markets close later than ours.

  • You already know therefore significantly in terms of this topic, produced me in my opinion consider it from a lot of varied angles. Its like women and men don’t seem to be fascinated unless it’s one thing to accomplish with Lady gaga! Your individual stuffs great. At all times maintain it up!

Leave a Reply