Hi readers
As we saw today the market isn't what many have been expecting in the professional community.
Market so strong in the morning only to loose all its gain by the close.
The reality check is on the way and it will stay for longer than many people think.
I think it will be very wise for governments around the world to redo there tax revenue numbers for gains from investments.
Not until Thursday is this negative aspect going to wane so don't expect any let up.
Questions
What's the real value of gold right now!
First I just want to say that I'm not a gold fan, in fact gold is the past secure investment in my view but in saying that I do respect people's love of it.
Oil has always lead any gold move up and or down.
So the ration has always been 18-22 barrels to an ounce of gold.
Therefore if we work it out from current prices gold should be $1012 top to bottom $828.
That's what the true value is of gold and at some point gold will come to that areas.
Right now it is very expensive by market standards.
So you need to be patient regarding buying levels for the long term.
Just look at copper?
2 years ago analysts came out and said that copper was never going to trade under $400 per pound.
Now it's trading under 250 and going to 190.
So please don't get sucked into the idea that things are cheap at the moment there not, and I still haven't seen a fire sale yet where the computer algorithms loose the plot and shut down and panic selling kicks in.
Sure we have seen some serious selling in oil but it hasn't shaken hedge fund books where they just liquidate at any cost the whole book.
How low do you see BHP going?
When I first made the call some laughed it off saying they would mortgage there house and buy BHP share under $30
Well shares are now around the $27.20 so is there more to go?
Yep just wait until profit downgrades kick in and P/E come off, then dividens are a little reduced.
Yes the superannuation industry will keep pumping money into these stocks so you will never loose out but I'm talking about buy cheap and hold for 15-20 years.
For those who don't know the Australian model of superannuation is designed to ensure an income for people before they retire so as not to be paid a pension.
The only problem with the model is it doesn't allow for inflation and as a result more and more money is required to be invested to make the adequate return.
The industry and government won't admit it and as a result it's a system which is now used for a tax revenue, on people.
It complicated I don't want to go into it.
Note this readers last time BHP traded under $20 was 2009.
After this 2 year correction we will see 17 years of growth, that's why very important to look for bargains and be ready when they come.
When would be the ideal time to consider investments in property or stocks?
I don't follow all markets around the world so you have to do your own research.
But as I have said before until a 30-40% reduction in prices has hit just wait.
I noticed that all the auto makers are upbeat about lower oil prices means more car sales .
Well I do think so.
People will change there habits and will make do with what they have.
Here in Singapore already bars and restaurants are seeing a serious slowdown in business activity.
That's bound to happen elsewhere where to.
In the states the media tends to be some what manipulated by what government what's to be reported.
Facts are employment is up but to the low skilled workers who are on minimum wage.
So how are these people going to buy these new cars or iPads.
When these people work to feed themselves and there families.
Why have you turned negative on Apple?
Apple is a company of innovation, what we have right now is the last of it.
Watches seriously who wears a watch? My father who is 71 doesn't wear a watch!
Apples competition has not only past them in innovation but has a good 3 years on them with half the price tag of an iPad or iPhone.
I'm not talking about Samsung either.
All phones are made in China at the present time wether you like it or not that's where everything is made.
China has tablet and phone makers that not many people know that can do what the latest pads and phones can do plus more.
What Apple is good at is advertising and that's where they have the upper hand at the present time but that has a time limit to it.
The Chinese are very good at getting there act together and making it happen so it only a matter of time before they tap into the world markets.
Now in regards to other revenue streams, the app business that's in the process of being opened up by many governments around the world as its a monopoly,no longer can Apple rely on 34% of every dollar spent on it App Store. ( that's just some of the issue)
For those who are not aware we have the first of the Mercury retrogrades coming on the 21st of this month until the 11th of February.
Wouldn't you know it is also earnings time for Wall Street.
So what does that tell you,we are in for a hell of a ride.
Those who miss will get smashed and those who lie during this time will face the consequences before June.
Those who make it will stay put as it was expected.
But the question is if there is no growth in the half year results what happens then to the multi national companies.
As always use the above as an indicator to your own work.
Past performance is no guarantee for future performance.
Ask your financial advisor on more on the above.
Don't act on free reading as you haven't payed for it to be obligated.
As we saw today the market isn't what many have been expecting in the professional community.
Market so strong in the morning only to loose all its gain by the close.
The reality check is on the way and it will stay for longer than many people think.
I think it will be very wise for governments around the world to redo there tax revenue numbers for gains from investments.
Not until Thursday is this negative aspect going to wane so don't expect any let up.
Questions
What's the real value of gold right now!
First I just want to say that I'm not a gold fan, in fact gold is the past secure investment in my view but in saying that I do respect people's love of it.
Oil has always lead any gold move up and or down.
So the ration has always been 18-22 barrels to an ounce of gold.
Therefore if we work it out from current prices gold should be $1012 top to bottom $828.
That's what the true value is of gold and at some point gold will come to that areas.
Right now it is very expensive by market standards.
So you need to be patient regarding buying levels for the long term.
Just look at copper?
2 years ago analysts came out and said that copper was never going to trade under $400 per pound.
Now it's trading under 250 and going to 190.
So please don't get sucked into the idea that things are cheap at the moment there not, and I still haven't seen a fire sale yet where the computer algorithms loose the plot and shut down and panic selling kicks in.
Sure we have seen some serious selling in oil but it hasn't shaken hedge fund books where they just liquidate at any cost the whole book.
How low do you see BHP going?
When I first made the call some laughed it off saying they would mortgage there house and buy BHP share under $30
Well shares are now around the $27.20 so is there more to go?
Yep just wait until profit downgrades kick in and P/E come off, then dividens are a little reduced.
Yes the superannuation industry will keep pumping money into these stocks so you will never loose out but I'm talking about buy cheap and hold for 15-20 years.
For those who don't know the Australian model of superannuation is designed to ensure an income for people before they retire so as not to be paid a pension.
The only problem with the model is it doesn't allow for inflation and as a result more and more money is required to be invested to make the adequate return.
The industry and government won't admit it and as a result it's a system which is now used for a tax revenue, on people.
It complicated I don't want to go into it.
Note this readers last time BHP traded under $20 was 2009.
After this 2 year correction we will see 17 years of growth, that's why very important to look for bargains and be ready when they come.
When would be the ideal time to consider investments in property or stocks?
I don't follow all markets around the world so you have to do your own research.
But as I have said before until a 30-40% reduction in prices has hit just wait.
I noticed that all the auto makers are upbeat about lower oil prices means more car sales .
Well I do think so.
People will change there habits and will make do with what they have.
Here in Singapore already bars and restaurants are seeing a serious slowdown in business activity.
That's bound to happen elsewhere where to.
In the states the media tends to be some what manipulated by what government what's to be reported.
Facts are employment is up but to the low skilled workers who are on minimum wage.
So how are these people going to buy these new cars or iPads.
When these people work to feed themselves and there families.
Why have you turned negative on Apple?
Apple is a company of innovation, what we have right now is the last of it.
Watches seriously who wears a watch? My father who is 71 doesn't wear a watch!
Apples competition has not only past them in innovation but has a good 3 years on them with half the price tag of an iPad or iPhone.
I'm not talking about Samsung either.
All phones are made in China at the present time wether you like it or not that's where everything is made.
China has tablet and phone makers that not many people know that can do what the latest pads and phones can do plus more.
What Apple is good at is advertising and that's where they have the upper hand at the present time but that has a time limit to it.
The Chinese are very good at getting there act together and making it happen so it only a matter of time before they tap into the world markets.
Now in regards to other revenue streams, the app business that's in the process of being opened up by many governments around the world as its a monopoly,no longer can Apple rely on 34% of every dollar spent on it App Store. ( that's just some of the issue)
For those who are not aware we have the first of the Mercury retrogrades coming on the 21st of this month until the 11th of February.
Wouldn't you know it is also earnings time for Wall Street.
So what does that tell you,we are in for a hell of a ride.
Those who miss will get smashed and those who lie during this time will face the consequences before June.
Those who make it will stay put as it was expected.
But the question is if there is no growth in the half year results what happens then to the multi national companies.
As always use the above as an indicator to your own work.
Past performance is no guarantee for future performance.
Ask your financial advisor on more on the above.
Don't act on free reading as you haven't payed for it to be obligated.
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