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Tuesday, November 10, 2015

Australia raising taxes????? Not smart

Hi readers

Markets are playing catch up at the present time..
Many have been burnt trading on technicals alone and I'm starting to see thin gap trading.
While this is early before the XMAS holiday season, its a cautious period we are heading into.

The astrology hasn't changed at all for the month, but the volatility could freak out many.
Today on the ASX200 we saw the market open run 20 points up then drop 50 points.
Only to gain 20 again then drop another 20, then run 50 till the close.
The issue with this is that the volatility was aggressive even for the ASX200.
So while the astrology stands the moves in percentage terms might be more.

Is BHP a buy at the present time?
The answer to that is NO..
Sit tight and wait, same with the banks in Australia, all are still way overpriced.
Current P/E ratios are on past performances.
If you think banks will make same or more profits next year then buy them.
But the astrology is against you.
In fact the astrology is very negative for Australia for a while.

For the astrologers out there ....as Pluto moves to 7 degrees from the birth chart of the GST in Australia we see the political infighting going to the next level regarding raising the rate.
Whether people can accept it or not Australia lives beyond its means.
It spends far to much capital per head of population.
Can't keep living on the borrowed money.

But one warning raising the GST won't solve the issues Australia has.
Germany started at 10% too and now is at 19%

A raising of the rate will nose dive the economy, regardless of the bull shit the government reckons about compensating the low income earners.
In case you don't realise they are the economy, rich people are tight asses.
I know this as I am one.

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