Murray Dawes

One thing we DO know about so called “bubbles” – periods of speculative excess that result in a crash – is they’re usually fuelled with borrowed money. US “margin” debt – borrowed money used to buy shares – is at a record high.

We know that the earnings growth hasn’t been there for the last few years. The market is going up anyway.
Some people are surprised by this. They shouldn’t be.

You might remember we chatted about REITs like SCG last week. Here’s a great example of a company having a business model with another juicy angle to generate value.

That’s the power of buying in a downturn, if you can get your analysis right.
But we’re not in a bear market, anymore. Where can we find something that’s still suppressed?

If commercial property firms are rising, then the economy can’t be too bad. It means rents and leases are solid, or the market would be dragging them down.

People chase performance. And it’s a simple fact that US shares keep trouncing Australia, and, to be fair to us, the rest of the world too.

This is one to watch from here. I suspect that fund managers and investors might be happy to look through this short-term weakness with an eye to the longer term.

Trump’s Treasury Secretary, Scott Bessent, knows his boss can bluster and curse and claim whatever he likes.
Bessent has the really hard job. Every day he has to convince the markets that this debt is not massive financial bomb under the global economy.