Pete Wargent blogspot

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

5 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's one of the finest property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete 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 & charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, author of the New York Times bestsellers 'End Game' & 'Code Red'.

"The level of detail in Pete's work is superlative across all of Australia's housing markets" - Grant Williams, co-founder RealVision - where world class experts share their thoughts on economics & finance - author of Things That Make You Go Hmmm, one of the world's most popular & widely-read financial publications.

"Wargent is a bald-faced realty foghorn" - David Llewellyn-Smith, 'MacroBusiness'.

Friday, 6 February 2015

Shares breaking records

New 7 year highs for shares

With interest rates set to fall share markets are on a tear, recording 11 straight days of gains taking markets to a 7 year high.

And futures markets suggest that today will make it 12, with the SPI reading +33 points following gains in the US overnight.

Bank gains

Commonwealth Bank (CBA) has gone ballistic adding another 2.7 percent yesterday to a new record close of $93.27 valuing the stock at more than $146.5 billion.

The major banks are opting to pass on the latest interest rate in full to borrowers.

Record stretch

11 positive trades in a row for the ASX 200 (XJO) represented an equal record from 2003, and today will likely see a new record stretch of gains.

The All Ordinaries (XAO) chart above shows the problem with simply waiting for share markets to crash before investing - the market can continue to rise for a long period of time without correcting, meaning that there can be a significant opportunity cost associated with dividends missed.

This is particularly so in an era when 'bad' economic news can be perceived as good news since it may lead to lower interest rates and/or stimulus.

This one of the arguments in favour of a simple averaging approach to investing.