Pete Wargent blogspot

Co-founder & CEO of AllenWargent property advisory & buyer's agents, 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 pete@allenwargent.com

Wednesday, 29 May 2013

Dow to record highs; consumer confidence, home prices jump

You know, I wish had a buck for every time someone had called the end of this bull market the last few years - I'd never need to invest again!

Overnight the Dow added 106 points or 0.69% to close at a new record 15,409 and the S&P 500 also rallied 0.6% to close at 1,660.

Here's Bloomie:


"U.S. stocks rose, with the Dow Jones Industrial Average returning to a record, after data showed consumer confidence climbed to the highest level since 2008 and home values jumped the most in seven years.
“The bottom line is there’s been a lot of chatter about how the market’s going to respond when the Fed tapers, but home prices are rising, jobless claims are coming down, and the stock market keeps going up,” James Paulsen, the Minneapolis-based chief investment strategist at Wells Capital Management, which oversees $325 billion, said by telephone. “People are feeling better. They’re noticing this recovery broadening out and firing on more cylinders on a regular basis. They know they’re under-allocated to risk assets.”
The S&P 500 rebounded from its first weekly decline since April 19. The gauge fell 1.1 percent last week as Federal Reserve Chairman Ben S. Bernanke said the central bank could reduce monetary stimulus if economic conditions continue to improve. Investors weighed the prospect of slower Fed bond-buying with data showing that existing home sales climbed and jobless claims topped estimates. U.S. markets were closed yesterday for a holiday."
Happy days indeed for investors in stocks.
Clearly investors believe that the "Bernanke put" is still going to push the market higher, as from a fundamental perspective stocks are now trading at some fairly elevated PE ratios given the fragile state of the economic recovery. 4 year returns from the index are now staggering:


Source: Yahoo finance
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I wonder how long before the iron ore price sneaks back into the news? 

The correction has taken some time to play out, but the trend is clear enough: the spot price has eased all the way back to US$117/tonne after the exuberant levels we saw in January and February...