Australian Finance and InvestingAustralian Finance and InvestingThis blog is a place for learning, sharing and exchanging ideas for personal finances and investing in Australia. Articles
New Website Layout
2007-10-28 21:59:00 On another note, as part of my website migration to the domain name www.financeviewpoint.com, I have update the site design and layout. I have added another pane to the left which allows me to spread out the large number of financial links/resources I have found. On left pane I have news sources and interesting aussie news feeds (updated daily). The centre block contains the posts and the right pane has useful finance links. I am still working on the colour scheme - not my strong point, so let me know if you have any suggestions.I would like to thank the tips-for-new bloggers website for the information that helped me update the website. For new bloggers, this is a great resource.Andy.If you liked reading this post you can subscribe to it here More About: Website , Layout
Some sound financial advice
2007-10-28 21:44:00 Vanguard Chairman and CEO Jack Brennan, in his weekly newsletters provides financial advice and tips from his experiences. I have a few Canguard funds, so like to read this newsletter. Here are some pertinent points from an Australian context:What are examples of good financial habits when it comes to retirement planning?Raise your level of superannuation participation. Take advantage of that opportunity to maximize your pretax savings, because pretax savings are a fabulous way to help create a comfortable retirement (including the 15% contribution tax)"You have to forgo a little bit of consumption in order to establish the good habit of saving and investing ? It's no different than deciding you're going to start an exercise program. You have to say, 'I am going to do this.'"The second habit, and it is very much related, is to put retirement saving "in the budget." Make it part of how you think about your monthly income and outgo?a little bit stashed away for the future. Once yo... More About: Advice , Financial , Sound , Some
New domain/site name
2007-10-26 18:42:00 Great news - I got my own domain/site name - www.financeviewpoint.com. As I am getting more serious with this blog, I thought my own domain is prudent. My readers/subscribers should not notice any difference, but if you do let me know. The ozfinance.blogspot.com site will be redirected to the new domain!I will continue to use the Google Blog engine so you should not notice any difference in the layout either. I hope there are no other complications.For folks that link to this site, can you update the name of the link to "Finance Viewpoint"Cheers,AndyIf you liked reading this post you can subscribe to it here More About: Domain , Site
What Australian Shares Americans buy
2007-10-25 00:33:00 For regular American investors, a simple way to get exposure to the Australian market is via the iShares MSCI Australia Index Exchange Traded Fund (ETF). The code for this in this ETF is EWA, and trades on the New York Stock Exchange (Dow Jones Index). What I want to share in this article is how Australian investors can use this ETF's information to help with portfolio selection/diversification and as a guide of the day to come on the ASX.An ETF is a fund which tracks a particular stock market index (Australia's ASX in this case) and which can be traded on an exchange like a share. This is a very popular vehicle in the US and allows investors to get exposure to specific sectors (link financials, defense) or country indexes (like China and Inida). For a full list of country ETF's click here.For investors looking to see if they have a balanced portfolio or for new investors trying to decide what quality shares to buy, it is worth looking at the holdings of this index fund. This sho... More About: Investing , Americans , Ares
What Australian Shares Americans buy
2007-10-25 00:33:00 For regular American investors, a simple way to get exposure to the Australian market is via the iShares MSCI Australia Index Exchange Traded Fund (ETF). The code for this in this ETF is EWA, and trades on the New York Stock Exchange (Dow Jones Index). What I want to share in this article is how Australian investors can use this ETF's information to help with portfolio selection/diversification and as a guide of the day to come on the ASX.An ETF is a fund which tracks a particular stock market index (Australia's ASX in this case) and which can be traded on an exchange like a share. This is a very popular vehicle in the US and allows investors to get exposure to specific sectors (link financials, defense) or country indexes (like China and Inida). For a full list of country ETF's click here.For investors looking to see if they have a balanced portfolio or for new investors trying to decide what quality shares to buy, it is worth looking at the holdings of this index fund. This sho... More About: Investing , Americans , Ares
Money, Appearances and Happiness
2007-10-22 18:31:00 At times when the market takes big downturns and we all feel poorer - based on paper losses at least, it is a good time to reinforce that money and wealth are nice, but not everything. I came across a nice article in the Wall Street Journal - You're Not Super Rich? You Lucked Out, by Jonathan Clements which got me thinking about this concept. Here are some excerpts from it with my view points, that ring especially true.On the face of it....We all swoon over nice and expensive things - a big house, flashy car dinner or private jets. We see others with these things and wish we could have them - a completely natural instinct But the fact is, while it is comforting to be financially secure, money is no measure of self-worth, no guarantee of happiness -- and no reason to be impressed.We all tend to sit up and take notice when we come across people with fancy titles, hefty incomes and immense riches. Yet these aren't signs of genius or virtue. Want proof? All it takes is two words: P... More About: Money , Happiness , Appearances
Money, Appearances and Happiness
2007-10-22 18:31:00 At times when the market takes big downturns and we all feel poorer - based on paper losses at least, it is a good time to reinforce that money and wealth are nice, but not everything. I came across a nice article in the Wall Street Journal - You're Not Super Rich? You Lucked Out, by Jonathan Clements which got me thinking about this concept. Here are some excerpts from it with my view points, that ring especially true.On the face of it....We all swoon over nice and expensive things - a big house, flashy car dinner or private jets. We see others with these things and wish we could have them - a completely natural instinct But the fact is, while it is comforting to be financially secure, money is no measure of self-worth, no guarantee of happiness -- and no reason to be impressed.We all tend to sit up and take notice when we come across people with fancy titles, hefty incomes and immense riches. Yet these aren't signs of genius or virtue. Want proof? All it takes is two words: P... More About: Wealth , Money , Happiness , Appearances
Tough week ahead - what to do and what to buy
2007-10-21 22:34:00 With the sharp fall in the US markets over the weekend, I expect that the ASX will also suffer heavily on Monday. My prediction is that the local Australian market will fall by 250 to 300 points this week – starting with 120+ points tomorrow. So what I am going to do?Well, per one my previous posts, the first thing is not to panic. Apart from issues in the US financial and housing markets, nothing else has changed fundamentally. Oil is high, but this is more due to speculation and fear of the geo-political issues in Northern Iraq. Oil inventories are high and I think the oil price shouldn’t spike too much higher.However, I would not rush in to buy stocks on Monday morning. In fact I think you should do nothing for the first few days next week – just wait and watch. However, use the opportunity later in the week to buy some top quality stocks that have good long term growth. Unless you are a day trader and like speculative stocks avoid trading on the volatility.So which stocks ... More About: Week , Tough , To Do , Ahead
Tough week ahead - what to do and what to buy
2007-10-21 22:34:00 With the sharp fall in the US markets over the weekend, I expect that the ASX will also suffer heavily on Monday. My prediction is that the local Australian market will fall by 250 to 300 points this week ? starting with 120+ points tomorrow. So what I am going to do?Well, per one my previous posts, the first thing is not to panic. Apart from issues in the US financial and housing markets, nothing else has changed fundamentally. Oil is high, but this is more due to speculation and fear of the geo-political issues in Northern Iraq. Oil inventories are high and I think the oil price shouldn?t spike too much higher.However, I would not rush in to buy stocks on Monday morning. In fact I think you should do nothing for the first few days next week ? just wait and watch. However, use the opportunity later in the week to buy some top quality stocks that have good long term growth. Unless you are a day trader and like speculative stocks avoid trading on the volatility.So which stocks should... More About: Week , Tough , To Do , Ahead
Black Monday - The '87 Crash and lessons for today
2007-10-19 15:45:00 October 19th 1987, 20 years ago from today is known as black Monday because worldwide stock markets dropped more than 20% in one day. Many professional and regular investors who sold out after that day took heavy losses. However, those who rode the fall out or invested just after the crash came out looking rosy. Below is a short video from a US business website marketwatch.com, in which the '87 crash is discussed and the opportunities/lessons following the market fall. The lessons are still relevant for today's investors who should not panic when the markets get volatile. Look at the market dips as opportunities to buy good value stocks, and sell when the markets are getting too exuberant. More About: Today , Black , Crash , Lessons
Black Monday - The '87 Crash and lessons for today
2007-10-19 15:45:00 October 19th 1987, 20 years ago from today is known as black Monday because worldwide stock markets dropped more than 20% in one day. Many professional and regular investors who sold out after that day took heavy losses. However, those who rode the fall out or invested just after the crash came out looking rosy. Below is a short video from a US business website marketwatch.com, in which the '87 crash is discussed and the opportunities/lessons following the market fall. The lessons are still relevant for today's investors who should not panic when the markets get volatile. Look at the market dips as opportunities to buy good value stocks, and sell when the markets are getting too exuberant.If you liked reading this post you can subscribe to it here More About: Today , Black , Crash , Lessons
What Analysts think BHP and RIO are worth due to booming iron-ore prices
2007-10-18 18:09:00 Iron-ore prices have been booming and are up more than 100% in some spot markets over the last year. Prices are forecast to keep increasing over the next few years as supply tries to catch up with demand and delivery infrastructure limitations. All of this strengthens the hand of the big iron-ore producers, especially mining giants Rio Tinto and BHP Billiton Together, with CVRD (the South American "BHP"), these companies control about 75% of the world's iron-ore trade. The outlook may be particularly good for Rio and BHP, whose mines are closer to China and can deliver ore to Chinese steelmakers at a discount. That may give the two companies leverage to demand higher prices from buyers in 2008 compared to competitors in other parts of the world.Anal ysts estimate that iron ore accounts for about 41% of Rio Tinto's earnings (EBIT) and 22% for BHP. HSBC recently increased its 12-month target price for Rio Tinto shares to $A110 from A$94, and for BHP Billiton to A$44 from A$39, tho... More About: Worth , Iron , Wort
What Analysts think BHP and RIO are worth due to booming iron-ore prices
2007-10-18 18:09:00 Iron-ore prices have been booming and are up more than 100% in some spot markets over the last year. Prices are forecast to keep increasing over the next few years as supply tries to catch up with demand and delivery infrastructure limitations. All of this strengthens the hand of the big iron-ore producers, especially mining giants Rio Tinto and BHP Billiton Together, with CVRD (the South American "BHP"), these companies control about 75% of the world's iron-ore trade. The outlook may be particularly good for Rio and BHP, whose mines are closer to China and can deliver ore to Chinese steelmakers at a discount. That may give the two companies leverage to demand higher prices from buyers in 2008 compared to competitors in other parts of the world.Anal ysts estimate that iron ore accounts for about 41% of Rio Tinto's earnings (EBIT) and 22% for BHP. HSBC recently increased its 12-month target price for Rio Tinto shares to $A110 from A$94, and for BHP Billiton to A$44 from A$39, tho... More About: Worth , Iron , Wort
This blog was referenced in the Wall Street Journal!
2007-10-17 17:06:00 My blog was referenced in arguably the worlds premeir newspaper - the wall street journal. The post referenced was about china and the implications of its booming sharemarket. This is a nice little accomplishment that validates the work I have been putting into this blog. On another note, I was talking to a colleague of mine who was buying a house. It is interesting here in the USA how much the finacial freedom in terms of borrowing or getting a mortgage of an indivivual is tied to their credit score and not what job they have, how much they make or have saved etc - as is done in Australia. A bad credit report/history is very damaging and affected the interest rate he was getting (higher than the standard rate he should have qualified for). He had to hire a credit report repair company to help him repair his credit so he would qualify for the better rate. Ovation Law (www.ovationlaw.com) was the company he hired. Their site has a various stories like this and some the process to so... More About: Journal , Wall Street , Blog , Street , Wall
This blog was referenced in the Wall Street Journal!
2007-10-17 17:06:00 My blog was referenced in arguably the worlds premeir newspaper - the wall street journal. The post referenced was about china and the implications of its booming sharemarket. This is a nice little accomplishment that validates the work I have been putting into this blog. On another note, I was talking to a colleague of mine who was buying a house. It is interesting here in the USA how much the finacial freedom in terms of borrowing or getting a mortgage of an indivivual is tied to their credit score and not what job they have, how much they make or have saved etc - as is done in Australia. A bad credit report/history is very damaging and affected the interest rate he was getting (higher than the standard rate he should have qualified for). He had to hire a credit report repair company to help him repair his credit so he would qualify for the better rate. Ovation Law (www.ovationlaw.com) was the company he hired. Their site has a various stories like this and some the process to so... More About: Journal , Wall Street , Blog , Street , Wall
A 2,000%+ share price jump in one day!
2007-10-17 02:54:00 I recently bought a speculative stock - DIO - based on a tip from a family member, who heard it from someone else, etc. Normally I wouldn't buy a stock like this, but I had a quick look at the company's prospects and it had some potential. The reason it went up 2,000%+ in one day is that it did a reverse 14:1 split. So what was a .17c stock when I bought the day before, was 2.40 at the end of the day - hence the large price jump when I logged on and saw my stock list. As it was a speculative play I only put $2000 in the stock, but still for a second I thought I had made $20,000 in one day! I should have read the fine print....So after taking a few deep breaths, I went back to my stock research and saw the details relating to a capital reorganisation they were undertaking and found mention of a 14:1 split - so there goes my dreams of a nice windfall! The actual stock - DIO, which showed the phenomenal gain was actually not trading and a proxy DIODA was the one that reflected the sp... More About: Share , Price , Jump
A 2,000%+ share price jump in one day!
2007-10-17 02:54:00 I recently bought a speculative stock - DIO - based on a tip from a family member, who heard it from someone else, etc. Normally I wouldn't buy a stock like this, but I had a quick look at the company's prospects and it had some potential. The reason it went up 2,000%+ in one day is that it did a reverse 14:1 split. So what was a .17c stock when I bought the day before, was 2.40 at the end of the day - hence the large price jump when I logged on and saw my stock list. As it was a speculative play I only put $2000 in the stock, but still for a second I thought I had made $20,000 in one day! I should have read the fine print....So after taking a few deep breaths, I went back to my stock research and saw the details relating to a capital reorganisation they were undertaking and found mention of a 14:1 split - so there goes my dreams of a nice windfall! The actual stock - DIO, which showed the phenomenal gain was actually not trading and a proxy DIODA was the one that reflected the sp... More About: Share , Price , Jump
China's Stock Market Boom - The implications and the profits
2007-10-16 21:08:00 Chinese stocks have nearly tripled in value in the past year and set yet another record yesterday, when the benchmark Shanghai Composite Index catapulted above 6000 for the first time. As a result, China suddenly has a stock market that is as powerful as its economy, now the world's third-largest. Though, some of the underlying companies stretched valuations makes the entire boom looks increasingly unsustainable. There is an increasing sense that the stock market is heading for trouble. The Shanghai Composite Index closed up 2.2% Monday at 6030.09. A year ago, it was below 2000 and has more than doubled this year. Yet, like the dot-com boom, investors don't want to miss out and keep pushing the market up. With the growing discretionary income of the ever expanding middle class, there is plenty of liquidity being pumped into the market. Not too mention the foreign investors who are chasing higher returns which cannot be found in the "developed" world for now. So... More About: Stock Market , Market , Stock , Profits , Boom
China's Stock Market Boom - The implications and the profits
2007-10-16 21:08:00 Chinese stocks have nearly tripled in value in the past year and set yet another record yesterday, when the benchmark Shanghai Composite Index catapulted above 6000 for the first time. As a result, China suddenly has a stock market that is as powerful as its economy, now the world's third-largest. Though, some of the underlying companies stretched valuations makes the entire boom looks increasingly unsustainable. There is an increasing sense that the stock market is heading for trouble. The Shanghai Composite Index closed up 2.2% Monday at 6030.09. A year ago, it was below 2000 and has more than doubled this year. Yet, like the dot-com boom, investors don't want to miss out and keep pushing the market up. With the growing discretionary income of the ever expanding middle class, there is plenty of liquidity being pumped into the market. Not too mention the foreign investors who are chasing higher returns which cannot be found in the "developed" world for now. So... More About: Stock Market , Market , Stock , Profits , Boom
Top Australian stocks by PEG ratio - Which ones to buy.
2007-10-14 21:51:00 One of the criteria I use to select stocks is the PEG ratio. Once I have looked at the stocks related macro and economic factors, I like to look at some the fundamentals of the the stock and the PEG ratio is one of the best fundamental valuation indicators. While the PEG is an important ratio, it is only as good as the underlying forecasts for earnings growth so do not use it in isolation, but more as a tool to help your overall analysis.So what is a PEG ratio? Simply put, the PEG ratio compares a stock's price/earnings ("P/E") ratio to its expected EPS growth rate. That is, are the company's earnings growing faster or slower than the markets perception (consensus analyst forecasts).- If the PEG ratio is equal to one, it means that the market is pricing the stock to fully reflect the stock's EPS growth.- If the PEG ratio is greater than one, it indicates that the stock is possibly overvalued or that the market expects future EPS growth to be greater than what is currently in the... More About: Stocks , Australian
Top Australian stocks by PEG ratio - Which ones to buy.
2007-10-14 21:51:00 One of the criteria I use to select stocks is the PEG ratio. Once I have looked at the stocks related macro and economic factors, I like to look at some the fundamentals of the the stock and the PEG ratio is one of the best fundamental valuation indicators. While the PEG is an important ratio, it is only as good as the underlying forecasts for earnings growth so do not use it in isolation, but more as a tool to help your overall analysis.So what is a PEG ratio? Simply put, the PEG ratio compares a stock's price/earnings ("P/E") ratio to its expected EPS growth rate. That is, are the company's earnings growing faster or slower than the markets perception (consensus analyst forecasts).- If the PEG ratio is equal to one, it means that the market is pricing the stock to fully reflect the stock's EPS growth.- If the PEG ratio is greater than one, it indicates that the stock is possibly overvalued or that the market expects future EPS growth to be greater than what is currently in the... More About: Stocks , Australian
Lifestyles of the Rich and Famous
2007-10-13 22:55:00 Check out the richest americans and how they live at billionaire homesHard to imagine some people are so rich and also why the American (materialistic) dream is such a big carrot for those who live in the U.S.A. More About: Rich , Famous , Lifestyles
Lifestyles of the Rich and Famous
2007-10-13 22:55:00 Check out the richest americans and how they live at billionaire homesHard to imagine some people are so rich and also why the American (materialistic) dream is such a big carrot for those who live in the U.S.A.If you liked reading this post you can subscribe to it here More About: Rich , Famous , Lifestyles
Some new links added
2007-10-13 20:39:00 I have added some new RSS feeds and links to my site recently and hopefully you will find them interesting and useful.RSS Feeds - Added 3 feeds from some decent financial news sources (AIR, ABC news and Share Cafe). You can find these on the right pane if you scroll to the bottom. They display the latest 5 articles from these sources in one placePersonal Finance - Found 2 new sites which have some good information on Australian personal finance products : Money Manager and ASIC financial tipsSuperannuation information : Some links to good Superannuation reference sites. There are many people better qualified than me to talk about super, so I am just pointing you in the direction of the sites that I think have the most relevant information.You can subscribe to this blog by clicking the links on top of the right hand pane or here. More About: Links
Some new links added
2007-10-13 20:39:00 I have added some new RSS feeds and links to my site recently and hopefully you will find them interesting and useful.RSS Feeds - Added 3 feeds from some decent financial news sources (AIR, ABC news and Share Cafe). You can find these on the right pane if you scroll to the bottom. They display the latest 5 articles from these sources in one placePersonal Finance - Found 2 new sites which have some good information on Australian personal finance products : Money Manager and ASIC financial tipsSuperannuation information : Some links to good Superannuation reference sites. There are many people better qualified than me to talk about super, so I am just pointing you in the direction of the sites that I think have the most relevant information.You can subscribe to this blog by clicking the links on top of the right hand pane or here.If you liked reading this post you can subscribe to it here More About: Links
Video News Links
2007-10-10 02:19:00 Sometimes it is nice to actually see a video, rather than read an article. When it comes to daily market updates, it can feel you are reading share symbols and long numbers with decimal points - becomes very dry reading very fast. One way to still get your daily update, and a growing trend with the increase in broadband usage, is via Video streaming.For the Aussie market, there are not too many good video feeds available. However I found a couple of decent ones. Here they are:ABC Business News VideosABN Newswires Business News VideosI am creating a Video news link list on the right pane and will add to the list as I find other sites. If you find any others let me know... More About: Links
Video News Links
2007-10-10 02:19:00 Sometimes it is nice to actually see a video, rather than read an article. When it comes to daily market updates, it can feel you are reading share symbols and long numbers with decimal points - becomes very dry reading very fast. One way to still get your daily update, and a growing trend with the increase in broadband usage, is via Video streaming.For the Aussie market, there are not too many good video feeds available. However I found a couple of decent ones. Here they are:ABC Business News VideosABN Newswires Business News VideosI am creating a Video news link list on the right pane and will add to the list as I find other sites. If you find any others let me know...If you liked reading this post you can subscribe to it here More About: Links
Common sense investing - An investor reminder
2007-10-10 00:25:00 A timely smart money article covering common sense investing principles as observed from the market action over the last 3 months. Remember it the next time the markets get volatile.NOW IT CAN BE said with certainty: With stocks above their July 19 peaks last week, the August market correction was indeed a buying opportunity. Too often investors are so preoccupied with the future ? what's going to happen next ? that they miss some obvious lessons from the recent past. To quote philosopher George Santayana, "those who cannot remember the past are condemned to repeat it." Here are some of conclusions and points to consider: There's something to be said for the old-fashioned buy and hold approach. While adroit traders had plenty of profit opportunities amidst the wrenching volatility, there were plenty of pitfalls, too ? witness the closing of several prominent hedge funds amidst massive losses. You could have slept through the entire credit crisis, done nothing, and still come out a... More About: Sense , Investing , Investor , Common , Common Sense
Common sense investing - An investor reminder
2007-10-10 00:25:00 A timely smart money article covering common sense investing principles as observed from the market action over the last 3 months. Remember it the next time the markets get volatile.NOW IT CAN BE said with certainty: With stocks above their July 19 peaks last week, the August market correction was indeed a buying opportunity. Too often investors are so preoccupied with the future ? what's going to happen next ? that they miss some obvious lessons from the recent past. To quote philosopher George Santayana, "those who cannot remember the past are condemned to repeat it." Here are some of conclusions and points to consider: There's something to be said for the old-fashioned buy and hold approach. While adroit traders had plenty of profit opportunities amidst the wrenching volatility, there were plenty of pitfalls, too ? witness the closing of several prominent hedge funds amidst massive losses. You could have slept through the entire credit crisis, done nothing, and still come out a... More About: Sense , Investing , Investor , Common , Common Sense
An interview with outgoing ANZ chief - John McFarlane
More articles from this author:2007-10-08 19:19:00 Saw an interesting article in the Wall Street journal over the weekend on retiring ANZ Chief John McFarlane. He will go down as one of Australia's leading CEO's and provides a glimpse into his management views and practices. He helped transform ANZ from a predominantly institutional bank with thin margins and high risks into one of the most successful retail banks in Australia and New Zealand. ANZ's share price almost tripled under Mr. McFarlane's tenure. I have included some excerpts from the article below.WSJ: What was your first job and what did you learn from it?Mr. McFarlane: My first job was in the production area of Ford Motor Co. in England where I was a graduate trainee in 1969. I don't think you'll find tougher circumstances, so everything after that was much easier. But I learned about manufacturing, operation, cost control, and purchasing. I learned that I didn't want to be in manufacturing, and I went and did my M.B.A.WSJ: Do you think people should go to busines... More About: Interview , Wall Street Journal , Going 1, 2, 3, 4, 5, 6, 7 |
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