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.

Tuesday, 17 June 2014

Gamble

A few years back, the Economist found that Australians are the biggest losers when it comes to gambling per capita.


Unfortunately, we aren't the biggest losers when it comes to weight loss, being the fifth heaviest male population on the planet according to Bloomberg visual data.

If you are feeling inclined towards a bit of a flutter - not that I'm an advocate - you can get $1.65 on New South Wales to win State of Origin II tomorrow night (ahem, I may or not be rolling over some small winnings from Origin I...).

If you're feeling a little braver you might choose to have a wager on Tony Abbott to still be the Coalition leader at the next election at $1.33, or perhaps even Malcolm Turnbull at $4.50.

But by far and away the biggest leveraged stakes of all at the moment appear to be happening in the world of iron ore.

It's been a heck of a ride for Fortescue Metals Group (FMG), one of the world's largest producers of iron ore, but with the iron ore price getting poleaxed, that chart is just starting to look rather ugly...


The PE ratio might appear cheap on the face of it but as at the last reporting period FMG had net debt of $8.7 billion, which is sitting against a market cap of now lower than $13 billion. 

That's a highly leveraged play.