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Kalgoorlie Golden Mile becomes a Global Top-10 Mine
6 October 2020 Northern Star Resources Ltd (ASX: NST) and Saracen Mineral Holdings Ltd (ASX: SAR) have announced their merger. The transaction will will unlock AUD1.5-2.0B in synergies and create a Top-10 global gold company valued at AUD16B. The merged entity will target a production of 2 Million oz per annum of gold, exclusively in […]
Are Bonds still a Safety Net When Stocks Fall?
From the Wall Street Journal, 5 Oct 2020, by Paul J. Davies: “…The wave of central bank stimulus unleashed to combat the Covid-19 crisis has repressed government bond yields in the U.S. and elsewhere, and threatens to keep yields trapped at low levels for years to come. Even as stock markets have recovered since April, 10-year Treasury yields […]
CPI – where to from here?
Bond yields continue to drop below 1%pa. They are now at 0.7% (see the Green Line below). Last time Bond yields (the Green Line below) were so low was in the 1970s and again in the 1980s . Look at what happened to the CPI (Purple Line below) then….
Australian Credit growth is falling
The Australian banking business is getting tougher…
Corporate Debt vs Profit
Debt is climbing and profit is falling…. just like they did in 2000 and 2008…
How good is your money??
U.S. Treasury bonds (and bills and notes) are often thought of as risk-free investments. The U.S. Treasury has always honoured its debts in dollars. BUT the purchasing power of those bonds can decline, sometimes dramatically. This chart, from Lyn Alden, shows the historical yield of the 10-year Treasury note (blue line) along with the forward […]
Finance available
I have an associate interested in investing in the following types of ventures: **Development, secured by freehold land, to 75% LTV **Corporate acquisition by company with EBITDA >A$10m ** Restructuring finance for property developments **Take over loan portfolio >A$30m Interested?
Do earnings justify the SPX500 prices?
…PEmax is NOW at the level of the peaks of Black Friday in October 1929 and Black Monday in October 1987 and is only less than the peak at the Y2K/dotcom bubble… PEmax = Share Price/highest prior 12-month earnings
This is a bear market…
From Colin Twiggs’ Trading Diary: “…This is a bear market. Recovery hinges on an unlikely resolution of the US-China ‘trade dispute’.”
Trimming US Federal Reserves
From The New York Times, 19 September 2017, by Binyamin Appelbaum, and Gold, Stocks and Forex, 23 September 2017, by Colin Twiggs: WASHINGTON — The Federal Reserve, which invested trillions of dollars to prop up the American economy after the 2008 financial crisis, is finally ready to take away the crutches. The Fed …will gradually reduce […]