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 finest 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.

Friday, 31 January 2014

Stocks have worst January in 4 years

Shares finished fairly flat today to conclude the month - the worst January in 4 years. 

The ASX 200 (XJO) shed 2.9% in the month, mining stocks such as BHP (-3.1%) and particularly iron-ore exposed Rio Tinto (-3.6%) feeling the pain of the lower iron ore prices. 

Naturally iron ore producer Fortescue Metals (FMG) felt that pain even more acutely with the share price closing at $5.33 having threatened $6 earlier in the month. Fortescue's production suffered a little from adverse weather in addition to the drop in the iron ore spot.

But perhaps the bigger story if that bank stocks have at last had some of the air sucked out of them in January. 

Commbank dropped 4.2% to $74.23 in January, Westpac lost 3.9%, NAB shed 3.8% to $33.25 and ANZ lost a lost 5.9% to $30.13. 

This in spite of evidence that business credit started to pick up in December, a point which ANZ highlighted yesterday. 

The Reserve Bank's financial aggregates showed that business credit picked up by 0.4% in December, but this still lagged behing the acceleration in housing credit which increased by 0.6% in the month and by 5.4% over the past year. 

As for retail, a few shockers this month: The Reject Shop (-35.3%), Super Retail Group (-19.4%) and JB Hi-Fi (-15.4%) variously suffering downgrades and trading woes respectively.

A bit of a slow week for data, but fear not, next week has some good stuff coming including Building Approvals figures on Monday and Retail Trade on Thursday. The excitement builds...!



Source: XJO

Meanwhile, January came to a close with RP Data recording dwelling prices as having concluded an 8th consecutive month of rises in January, with no surprises that Melbourne and Sydney are leading the way. 

Enjoy the weekend all!