Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Wednesday, 9 November 2016

Markets trumped


Woke up in London to the excellent news that the world won't have to endure another Clinton Presidency.

Less fortunately for America, and the rest of the world, that means that the other bozo won.

Anyway, I decided long ago that this isn't a political blog, so I'll spare you any more of that. 

Too bad, by the way, if you bought the meme that Australia stock markets offered value simply because the index has declined over the past decade.

As opined here previously, the ASX 200 was never heading back to 6000 anyway, but it definitely isn't now. 

Aussie stocks began to plunge after midday as they realised that they'd mispriced the election outcome.

Still the full enormity of the election result wasn't exposed until after the close.

Futures markets from London to New York initially got smoked, though the FTSE 100 & DJIA will recover as spooked investors once again realise glumly that there may be nowhere better to put their money.

Perversely, SPI futures are now pointing to gains for Aussie stocks today. 

Still, only a matter of time before the ASX 200 has a '4' in front of it again if you ask me, just as soon as markets wake up to what a dire result this really was, together with the adverse indirect impacts on Australia.

Image result for the scream


You'd be struggling to think of too many positives today.

Dalian iron ore hit limit up (+9 per cent), while coking coal prices have now quadrupled since June. 

With all the other nonsense going on, Australia might just be grateful it built all those mines after all!