Real-time thoughts & analysis of the markets, economy & more...
Co-founder & CEO of AllenWargent property market & hedge fund advisory.
Check us out here www.allenwargent.com - to invest in Sydney/Brisbane property or for media/public speaking requests email firstname.lastname@example.org
Pete Wargent blogspot
Co-founder & CEO of AllenWargent property advisory, offices in Brisbane (Riverside) & Sydney (Martin Place) - clients include hedge funds, resi funds, & private investors.
4 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.
"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he is one of the better property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.
"Pete Wargent is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.
"I've been investing for over 40 years & read nearly every investment book ever written yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.
"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data and charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, and author of the New York Times bestsellers 'End Game' and 'Code Red'.
"Pete's daily analysis is unputdownable" - Dr. Chris Caton, Chief Economist, BT Financial.
Invest in Sydney/Brisbane property markets, or for media/public speaking requests, email email@example.com
Friday, 29 June 2012
How have equities done over 5 years?
The answer is in the chart below. This emphasises two things:
1) You need to take a long-term outlook to investing in shares (30-50 years ideally) - the 10 year chart, for example, looks much healthier!
2) Make sure you are investing in income-paying assets, then you can take your focus away from the share prices (note that I said 'prices' not 'values') and enjoy the dividend stream
Personally, I'm in a FTSE-tracker in the UK. The below chart is for the Australian All Ordinaries (XAO) but the trend is not dissimilar.
The All Ordinaries comprises the 500 largest listed companies in Australia by market capitalisation (and thus around 95% of the stock market as measured by market cap). The remaining 5% is made up of a couple of thousand smaller companies and the 'penny dreadfuls'.
Former fund manager and author Peter Thornhill of Motivated Money, who I coffee'd with earlier in the week, favours investing in a well-diversified basket of industrial shares rather than the resources stocks, due to their stronger dividends and long-term outperformance.
Buy, hold, enjoy the income (dividends) and do something more interesting with your time than checking stock price charts. It's hard to fault the logic.
It's been a tough few years the United Kingdom, so hopefully the London Olympics will put a spring back in the British step?
Economy sliding into recession, the MCC is run by elitist twits (mind you, that has unquestionably always been true), too many people abusing the benefits system. As Poms, we generally acknowledge our shortcomings and aren't afraid to admit to them - but we've always done one thing better than everyone else...rock 'n' roll.