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.

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Thursday, 24 January 2013

Chinese data strong and stocks are flying

From SMH here:

"The Australian market closed at a 20-month peak as high yield stocks made strong gains.

At the close on Thursday, the benchmark S&P/ASX200 index was up 22.4 points, or 0.47 per cent at 4,810.2, while the broader All Ordinaries index gained 21.7 points, or 0.45 per cent, at 4,833.8.

The market closed at its highest level since May 2011.

RBS Morgans private client adviser Bill Bishop said many investors were now looking at high yield stocks such as the major banks and Telstra because of Australia’s low interest rates.

‘‘The low interest rates are driving some money out of bank deposits and into the stock market,’’ he said.

The Dow Jones Industrial Average rose 67.12 points (0.49 per cent) to 13,779.33, its highest level since October 2007."

That's an important point regarding the high-yielding stocks. Banks have been solid of late and Telstra's recovery (TLS) is just on fire at above $4.50. And if those five stocks plus the mining majors are performing then the market is likely to be performing too.

As a holder of BHP Billiton (BHP) I was interested to note the share price back above $37. The predictions of it collapsing to "well below $5" are looking fairly moronic now. 

Mind you, they were fairly moronic when they were made given that BHP was busy churning out all-time record operating cashflows and had a cash balance that would cover a valuation of $5.

Still, there's no arguing with some people.