In today’s Money Morning, we’re seeing interest rate increase after increase. While markets believe it will stop soon, central banks seem intent on going higher…which will be bad news for stocks. Add to this the geopolitical tensions that are keeping markets on edge, and there’s certainly plenty of risk out there. However, there’s a big opportunity in a megatrend that’s set to play out for years to come. Read on to find out more…
Investors who buy stocks now are pulling their oars against the current. Investors should buy stocks when they’re cheap and SELL them when they’re dear. But stocks are already expensive. If there is any upside, it’s not likely to be much.
We know, accept, and recognise the need for the principle of balance in our lives. We know excesses always have consequences. Yet, when it comes to investment markets, we somehow want an exclusion zone to be applied on this principle. However, periods of excessive exuberance have all been countered by an equal and opposite force of fearful selling. Balance, in due course, is always being restored. Look at the momentum behind the everything bubble pendulum…taking valuation metrics well-beyond 1929 and the dotcom peaks. The process of restoring balance has begun yet again…but how far will it go?
In today’s Money Morning, Openpay is in receivership. Laybuy is delisting. Is this the end of BNPL in Australia, and what can investors learn from the whole ordeal? For one, unit economics are a valuable tool.
‘Investors’ are so accustomed to a rising market…so used to the Fed goosing up prices…that they believe it must be helping them even when it raises rates. But there’s been a major sea change. The primary trend is running in the other direction
Everywhere I look, I’m supposed to see a recession, except it doesn’t show up. We have retailers reporting cracking results, low defaults across the banks, and a roaring share market. But there are still plenty of stocks trading at cheap valuations, even with the general market a whisker off all-time highs. Property-related stocks are one of those sectors…
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