Murray Dawes

Commodities are cyclical. Always have been, always will be. The poor fools who bought at the top arguably got what they deserved.

You don’t buy those types of shares when they’re booming. You’re supposed to buy them when they’re down.

Nobody knew, even those at Apple, just how gigantic the company would become.

In turn, Apple’s investment in China skyrocketed. Apple’s money and training capitalised China’s entire electronics industry.

But it was never the plan. There was no plan. It just happened that way.

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.