Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), and CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

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.

Wednesday, 30 January 2013

Risk on: Dow powers on to 5 year highs

The Dow is now just one good trade away from the psychological 14,000 barrier moving up 60 points at the time of blogging or 0.4% to around 13,940.

A string of good earnings reports saw the industrials continuing to climb.

The DJIA is now at 5 year highs having already moved up 5.4% in the first month of the year so far. The market is now only 2% from its highest ever level.

Happy days for stock owners indeed.

Consumer confidence remains very low in the US, but when it comes to stock markets, momentum is everything, and the markets certainly have that at the moment.

With term deposits yielding a miserable tick or two above 4% pre-tax in Australia, it is small wonder investors have become bored. Even after stocks have gone on such a strong run high-yielding stocks such as Telstra (TLS)  or major banks are returning fully-franked 6-7% dividends.

This often happens when interest rates are dropped so sharply, but investors need to be aware that stocks have already had a few cracks at a recovery since 2009 - you can never be certain that this is the one to be successful.

Could be some turbulent times ahead...

From Bloomberg:

"The S&P 500 (SPX) has more than doubled from a 12-year low in 2009 as corporate earnings have climbed for three years and the Federal Reserve has increased its bond purchases to keep interest rates low to spur growth. The S&P 500 is about 4 percent below its record of 1,565.15 set in October 2007 while the Dow is less than 2 percent from its all-time high.
Twenty-five companies in the S&P 500 are reporting quarterly earnings today. About 75 percent of the 175 companies in the S&P 500 that have released results so far in the quarter exceeded profit projections, while 67 percent surpassed sales estimates, according to data compiled by Bloomberg."