Pidgin Economics

A look at world economics, from the point of view of an investor. The aim of this area is to interpret the continuous barrage of data, sales pitches and propoganda and bring it into a form that is actually useful to investors.

This is a time to be cautious of being cautious

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There is a lot of worry and fright circulating as news and information about investment markets right now. I don’t want to downplay the potential for dire outcomes from the GFC and various government attempts to reduce its impact on their economies. However, there does need to be a little more informed comment on just…

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It was the best of times, it was the worst of times…

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Charles Dickens penned these words as the start of his ‘Tale of Two Cities‘ – a stark portrayal of social, political and economic contrasts so vivid that it remains, even today,  one of the biggest selling English novels. Why the literary reference? Apart from enjoying the novel immensely, the key phrase most clearly elucidates my…

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Global Position, Part II

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Further to my note of the 30th June, here is a little more detail in relation to some of my broader comments on global imbalances. No pondering of the market today is going to make sense unless you have a handle on these imbalances and the political arguments that are made around them. Major Imbalance…

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Let’s look at the global position…

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i don’t know about you but at this time of the year i don’t sleep all that much. A financial planner looks at the end of the financial year as a one-way farm gate – if you don’t get all of your clients’ assets and details through that gate then there are opportunities that are irretrievably…

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Australia’s amazing job success

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The May employment figures showed 36,400 new full-time jobs, and unemployment falling to 5.2%. Sometimes figures can mean nothing when taken in isolation. How about considering the fact that data from the United States suggests private employment rose  there rose by only 41,000 in May? That is an amazing result – especially when you consider…

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People in glass houses…

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Who are YOU calling “PIG”? There is a demeaning acronym given to Euro countries under the spotlight at the moment – “PIGS” (Portugal, Ireland, Greece and Spain). This labelling fuels the feelings of superiority on the part of the finger-pointers and the feeling of oppression by those being pointed at. But how valid are those pointy…

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Wage rises seem high

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An interesting news feed passed across my screen this morning (courtesy RWE AusBusiness News; via Coretrading market software). It seems that wages in the three months to February grew by 1.1%. Frankly, even i yawned at that. However, the year-on-year figures are where the real interest begins. It seems that in the year to February, AWOTE…

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Australia escapes ‘austerity measures’

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Sensational headlines are becoming commonplace in the financial world. Once the preserve of the gossip rags or mass circulation dailys, it seems that drama has become the daily grist of the financial media. We are in strange times indeed. The reason for this note is to consider just how well Australia is positioned right now,…

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Another day, another rate rise…

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The Reserve Bank Governor, Glenn Stevens, today released a media statement to confirm a 0.25% rate rise to 4.25%. It will be interesting to see if we end up with the hoopla on banks passing on this rate rise in full or part or more as we did with the last one and the Westpac…

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A tale of two economies…

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Why is the Australian sharemarket down 29% from its 1 November 2007 high point when the United States S&P 500 index is only down 26%? Is the United States economy doing better over that time period than that of Australia? Looked at another way, why is Australia’s market up only 56% from its 10th March…

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