| The ‘Hidden’ Alpha Potential Within the ASX |
 | | By Callum Newman | | Editor, Small-Cap Systems and Australian Small-Cap Investigator |
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Dear Reader, Our compliance officer was looking at me like I was mad. ‘Your wife is going to let you do that?’ he asked. ‘Of course,’ I said. ‘She trusts me.’ What had him in such a hot and bothered state? I was telling anyone who cared to listen – not many, really – that I was borrowing against my house to buy shares. This was last year. Our compliance offer couldn’t believe it. His eyes screamed, ‘What about the risk?’ He was right, of course. Using leverage in the share market can be very, very risky indeed. It’s not something to undertake lightly. But I had the courage of my convictions. And look at the Aussie market now. The ASX is breaking all time new highs. What can I say except… …you beauty! I can tell you, VERY few people saw this coming. The good news is that I still see so much alpha potential ahead. Let me explain why… Continue Reading... ***  | | By Bill Bonner | | Editor, Fat Tail Daily |
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‘Things tend to go back to ‘normal.’ If not, there would be no “normal.”’ Hallelujah! The economy is weakening! In the perverse world of finance, circa 2024, bad news is good news. Up is down. And lies are as good as truth. Investors don’t need us to connect the dots. When the economy weakens…they look for the Fed to react by lowering interest rates. A lower Fed rate means more borrowing…and more speculating…and more money for Wall Street. Reported a week ago: ‘Nasdaq, S&P hit record highs…New data show labor market weakness and raise rate cut hopes.’ And then, a few days later… ‘Dow closes above 40,000 for first time ever ‘The Dow Jones Industrial Average closed above the 40,000 mark Friday for the first time in its 139-year history. ‘Wall Street has been boosted in recent days by renewed hopes of rate cuts from the Federal Reserve that would loosen monetary conditions for consumers and businesses.’ Consumers don’t consume more when the labour market weakens. Businesses don’t sell much to people without jobs. Sales go down, not up. Corporate profits go down too. Enterprises become less valuable, not more valuable. Continue Reading... All advice is general advice and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment. |
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