JavaScript disabled. Please enable JavaScript to use My News, My Clippings, My Comments and user settings.

If you have trouble accessing our login form below, you can go to our login page.

If you have trouble accessing our login form below, you can go to our login page.

Markets Live: Shares end week higher

Date

Patrick Commins, Jens Meyer

A rally in the big miners and banks pushed the market higher for the day and for the week, despite Metcash slumping almost 10 per cent.

Sort posts by:
Sort comments by:
  • "Those who fear heights however have little to worry about. In the words of Gerard Manly Hopkins, the AGL cliff is a cliff of the mind:"

    www.smh.com.au/business/comment-and-analysis/no-need-to-fear-agls-gas-supply-cliff-20140320-354bb.html#ixzz2wZV5tmk8

    Michael West skewers the gas industry.

    No shortage, prices falling, excess production capacity.

    The shale gas revolution has pulled the rug out fom under them.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    March 21, 2014, 4:20PM
    • Those standover merchants make The Sopranos look like kindergarten bullies. "Pay us 20% more or no more hot dinners and no more hot showers".

      Commenter
      mitch of ACT
      Date and time
      March 21, 2014, 4:43PM
  • Hi Eds, re 3:56 post, the Nekkei is actually closed today for the Vernal Equinox Day holiday.

    EDs: Thanks JJ!

    Commenter
    JJ
    Location
    NSW
    Date and time
    March 21, 2014, 4:15PM
    • No wonder the region is up! Better move briskly up the stairs while the Nikkei sleeps...

      :)))

      Commenter
      South East Asia
      Location
      Mogul
      Date and time
      March 21, 2014, 4:38PM
  • Anybody get on TRS @ $9??
    Looks like the bottom... perhaps...

    Commenter
    Stoja
    Location
    GC
    Date and time
    March 21, 2014, 4:12PM
    • Still big selling pressure in the closing auction on ACR

      Commenter
      mitch of ACT
      Date and time
      March 21, 2014, 4:08PM
      • cmon Eds get a grip , I know its Friday but Japan is closed (not down 1.7%)

        Eds: Thanks Chris. Changed now.

        Commenter
        Chris
        Location
        Sydney
        Date and time
        March 21, 2014, 3:57PM
        • Any idea why Red Fork Energy has been free falling lately?

          Commenter
          LiMaNia
          Location
          Toorak
          Date and time
          March 21, 2014, 3:52PM
          • Strong finish. A nice strong finish today for the shares. Hopefully this demonstrates strength that will now continue in April!

            Commenter
            It's All About Making Money
            Location
            Lennox Hd
            Date and time
            March 21, 2014, 3:52PM
            • How much of that strong finish was due to the S&P rebalance, as referenced at 9:31, and how much will be unwound on our usual down day of Monday.

              Commenter
              mitch of ACT
              Date and time
              March 21, 2014, 4:36PM
            • There will be April fools then in the following month cries of Mayday! Mayday!

              Commenter
              South East Asia
              Location
              Mogul
              Date and time
              March 21, 2014, 4:39PM
          • Hey Mitch,
            are you the love child of Gareth Evans and Cheryl Kernot?

            Commenter
            The farmer
            Location
            Mudgee
            Date and time
            March 21, 2014, 3:51PM
            • Not as far as I know but I often wonder whether Tony Abbott is the progeny of Robert Menzies and Margaret Thatcher. That would account for his love of the Union Jack and his hatred of unions.

              Commenter
              mitch of ACT
              Date and time
              March 21, 2014, 4:46PM
            • "Not as far as I know but I often wonder"

              Ok that'll do me for this week LOL

              Commenter
              Weekend time
              Date and time
              March 21, 2014, 4:59PM
          • Interest Rates up...Stocks down

            Interest Rates up...Mortgagee Stress up

            Interest Rates up...Dividends down

            Interest Rates up...Real Estate values down

            Interest Rates up...Bond values down

            Interest Rates up...Business debt stress up
            etc etc etc etc

            Get out now or....go down with it.

            Commenter
            Cash is Still King, especially FX
            Location
            Sydney
            Date and time
            March 21, 2014, 3:45PM
            • If paper shufflers comprise 35% of the ASX what happens if there's a downturn in banking and financial services? Where will all those laid off staff go to work? How will all those mortgages on $1 million 40sq ft CBD apartments get paid?

              Commenter
              Simon Townsend
              Location
              Wonder World
              Date and time
              March 21, 2014, 3:35PM
              • Pyrmont's barista Boom!

                Commenter
                tea drinker
                Date and time
                March 21, 2014, 4:08PM
            • "A corruption inquiry into the Obeid family-linked company Australian Water Holdings has heard explosive claims its then chairman, Liberal Party heavyweight Arthur Sinodinos, was warned it was racking up massive debts, including tens of thousands of dollars in donations to the Liberal Party."

              Uh oh, a trusted lieutenant turns into the Achilles heel.

              Commenter
              Allan
              Location
              Prahran
              Date and time
              March 21, 2014, 3:31PM
              • When one's name starts with Sin....enough said....Guilty.

                Commenter
                Judge
                Location
                Sydney
                Date and time
                March 21, 2014, 3:50PM
            • "leaving local-born would-be first home buyers sheltering under bridges or having to buy something less that absolutely ideal, "

              No Michael, Gen Y aren't looking for something "absolutely ideal", they are looking for something affordable.

              Why should they pay triple what your generation did? They won't.

              Commenter
              Allan
              Location
              Prahran
              Date and time
              March 21, 2014, 3:26PM
              • anyone got MCR on their radar,or holding?

                Commenter
                BearShapedBull
                Location
                MugPunters Lounge
                Date and time
                March 21, 2014, 3:23PM
                • "Given the project was already 30 per cent complete in terms of construction, and the number of contracts Roy Hill has been letting in the past year, it had got to the point of no return. It has spent a fortune building an enormous camp, processing facilities, rail and port. If the project didn't get financing, billions of dollars in equity would have been lost."

                  Yep as if this is any vindication. Gina Rhinehart once again displays her nast side.

                  Te banks are going to regret this deal long into the future.

                  Commenter
                  Allan
                  Location
                  Prahran
                  Date and time
                  March 21, 2014, 3:10PM
                  • Sunk costs should not be a factor in any return on investment calculations.

                    Commenter
                    Dr No
                    Location
                    Sydney
                    Date and time
                    March 21, 2014, 3:36PM
                  • Great, we made a big profit. Pity about all the money we spent beforehand that we didn't get back. Is that the receiver/manager at the door?

                    Commenter
                    mitch of ACT
                    Date and time
                    March 21, 2014, 4:10PM
                  • Yep and for commodities so are price forecasts. Which more often than not are wrong.

                    Commenter
                    Allan
                    Location
                    Prahran
                    Date and time
                    March 21, 2014, 4:12PM
                • "Many AMP jobs will be moved to India"

                  Commenter
                  Gordon Akman
                  Location
                  Broadbeach
                  Date and time
                  March 21, 2014, 3:06PM
                  • Great the guy that rings me about my windows having a virus will now be doing people's Super. SMSFs will be the end of AMP

                    Commenter
                    Elric
                    Location
                    Melnibone
                    Date and time
                    March 21, 2014, 3:24PM
                  • so...? It will simply be known as IMP (please hold on now for a quick survey, thank you sir!,)

                    Commenter
                    Mack
                    Location
                    Sydney
                    Date and time
                    March 21, 2014, 3:30PM
                  • And now they don't even have to pretend about giving two hoots about your best interests.

                    Commenter
                    mitch of ACT
                    Date and time
                    March 21, 2014, 3:41PM
                • "The Finance Sector Union says wealth management company AMP is about to slash hundreds of jobs from its Melbourne office."

                  Commenter
                  Gordon Akman
                  Location
                  Broadbeach
                  Date and time
                  March 21, 2014, 3:02PM
                    • Qantas, SPC, Ford and Holden now AMP. Wonder who else will start cutting jobs

                      Commenter
                      Centrelink
                      Date and time
                      March 21, 2014, 3:12PM
                    • Don't forget the 14,000 to come out of the APS. No loss, some would say, but you will just be waiting a lot longer for the services the APS provides, e.g. Centrelink, pensions, tax refunds, Medicare, Customs etc.

                      Commenter
                      mitch of ACT
                      Date and time
                      March 21, 2014, 3:33PM
                    • Then there's 500 Electrolux workers in Orange and 200 contractors who will lose their jobs in 2016.

                      Commenter
                      mitch of ACT
                      Date and time
                      March 21, 2014, 4:23PM
                  • @153pm PDN comment
                    Signal Update
                    Our system’s recommendation today is to STAY IN CASH. The previous SELL recommendation was issued on 11/03/2014, 9 days ago, when the stock price was 0.5737. Since then PDN.AX has fallen by -9.36%.
                    Market Outlook
                    The bears are still strong. Besides, the signal is suggesting to STAY IN CASH. It is best to follow the signal and wait on the sidelines, but with a more cautious attitude.

                    Commenter
                    BearShapedBull
                    Location
                    MugPunters Lounge
                    Date and time
                    March 21, 2014, 3:00PM
                    • That is a pity. I saw the graph and had a rush of blood and bought 6000 PDN @ 0.5175. In the red already :) Let's see what the future holds.

                      Commenter
                      Elric
                      Location
                      Melnibone
                      Date and time
                      March 21, 2014, 3:21PM
                  • Yesterday we had a small discussion on growth stocks...think it was Jimmy looking into trades with VMT and DDT.Just wondering on peps thoughts re-timeframes for growth,i guess a new developing business is expected to have things turned around within 2 years from start-up IPO.Some for sure get off the ground alot quicker,but seen as the market seems quite a fickle beast of late the impatience in investment and ruthless battering of share prices due to news [not wanted to hear].The general climate towards punters interested in growth stocks can be quite a ride,and frustrating along the way.I for one dont mind having a punt on new bios/inventions/software companies after doing my own research but with everything released prior to start-up being upbeat on the companies focus and aims,itds getting harder to sort the potential until some truer balance sheets and quarterly reports are produced.Hope its not coming across as a rant,just my own perception.

                    Commenter
                    BearShapedBull
                    Location
                    MugPunters Lounge
                    Date and time
                    March 21, 2014, 2:46PM
                    • Wasn't me mate. There is another cat out there going by the name of JimmyM (I think) who likes his growth stocks. I have been thinking I need a new moniker. Apparently the most generic name I could think of isn't unique to me. Whoda' thunk it?

                      I do think the DataDot technology is a good one although I am not familiar with the company.

                      Commenter
                      Jimmy
                      Date and time
                      March 21, 2014, 4:05PM
                  • yes BNO all is forgiven jus keep headin that way,we'll forgot the clinical fail after a week or two.

                    Commenter
                    BearShapedBull
                    Location
                    MugPunters Lounge
                    Date and time
                    March 21, 2014, 2:31PM
                    • 200,000 reason why no-one should consider bitcoin as currency, let alone bitcoin exchanges the equal of banks. Banks are heavily regulated yet still make mistakes. As for bitcoin, what a joke. It looks like a thief may have relented and returned the loot.

                      Commenter
                      Wally
                      Location
                      Flynn
                      Date and time
                      March 21, 2014, 2:31PM
                      • People talk manically about renewable energy as if only one part of the population wishes this as the outcome for our energy needs.

                        It has now become a sacred cow that any person who questions the issue is relegated to pariah status.

                        Whenever there is a study to compare coal to other forms you can see through the figures which usually project to 2030 or more that they have selected a random figure for the price of carbon and another price for storage of carbon. The latest ones I have seen use a carbon price of $56 and storage of $27. They have to work very hard to justify on an economical basis for renewables.
                        If only the argument provided rational and relevant debate they would easily get the attention of the population instead of feathering their own egos with 10 second television grabs about world ending scenarios.

                        I can’t believe any rational person doesn't want renewable energy however the hijack of this debate by self serving egotists both academic and political creates only antagonism where there should be relevance. I have no doubt that people will pay a higher price for something if they can be logically persuaded instead of pilloried for questioning.

                        Commenter
                        Harry Rogers
                        Date and time
                        March 21, 2014, 1:58PM
                        • Funny that's the exact same argument that creationists and the tobacco lobby use.

                          The only reason that environmentalists and anyone else who can see the writing on the wall takes a zero tolerance approach is because CO2 polluters have very deep pockets and an army of paid astroturfers.

                          Commenter
                          Allan
                          Location
                          Prahran
                          Date and time
                          March 21, 2014, 2:34PM
                        • Harry, you would have to admit that the politicization of the weather was a masterstroke. By doing so the other political parties have reacted against the need to take action. The abusers in general would not have a clue about the driving forces behind climate change. All you hear is CO2, its CO2 ''dummy''. Back in the early 1900's they thought that ice cream caused polio. Like the abusers they saw a connection but failed to see the big picture. Abusive people, as a rule, fail to have a substantial argument and resort to insults. Meanwhile action is not being taken.

                          Commenter
                          Wally
                          Location
                          Flynn
                          Date and time
                          March 21, 2014, 2:39PM
                        • Well said Harry. Same applies to all the alarmist nonsense surrounding climate change...does nothing to engender support for meaningful action.

                          Commenter
                          happy Hippy
                          Date and time
                          March 21, 2014, 2:40PM
                        • What meaningful action and why do we need it if global warming aka climate change is not real?

                          Commenter
                          Allan
                          Location
                          Prahran
                          Date and time
                          March 21, 2014, 3:00PM
                        • I have great faith in the logic of the "man in the street" and clearly he hasn't been convinced on these issues.

                          More needs to be done and not by academics who rightly or wrongly seem to be as self serving as the coal industry.

                          I don't have total answer but the way these issues have been sold are clearly unequivocally not working.

                          Commenter
                          Harry Rogers
                          Date and time
                          March 21, 2014, 3:21PM
                        • That is not the same argument that creationists use Allan. I did not say CC is not real...I was suggesting that after 2 decades of alarmist warnings that have failed totally to win the hearts and minds of the average 'joe blows' the doomsters might be advised to change their approach.

                          Commenter
                          happy Hippy
                          Date and time
                          March 21, 2014, 3:42PM
                        • "More needs to be done and not by academics "

                          LOL yeah what we really need is an army of Greg Hunts.

                          Commenter
                          Allan
                          Location
                          Prahran
                          Date and time
                          March 21, 2014, 3:43PM
                        • Some people just can't get through the day without abusing someone. Always from the sidelines never on the field.

                          Commenter
                          Harry Rogers
                          Date and time
                          March 21, 2014, 4:53PM
                      • Crikey! it's a good think I don't short.

                        Commenter
                        newbie
                        Date and time
                        March 21, 2014, 1:55PM
                        • @1237 comment prolly UBS short selling them down in a usual tricks campaign.

                          Commenter
                          BearShapedBull
                          Location
                          MugPunters Lounge
                          Date and time
                          March 21, 2014, 1:30PM
                          • Man who lives off government funded research grants says we have lot to be worried about in the future.
                            Astonishing!

                            Commenter
                            Chumlee
                            Date and time
                            March 21, 2014, 1:23PM
                            • Gold.

                              Commenter
                              Elric
                              Location
                              Melbourne
                              Date and time
                              March 21, 2014, 1:52PM
                            • Politicians who are answerable to the public say "trust us"

                              equally astonishing!!

                              Commenter
                              trust who
                              Date and time
                              March 21, 2014, 2:28PM
                            • Chumlee, given that we have a government who is extremely opposed to climate science, I'd say if you were living off government grants (I wonder if that's as lucrative as Arthur Sinodinis's $2,000 per hour job that the shareholders didn't know about?) your best bet would be to argue there's no problem at all!

                              Commenter
                              Fred
                              Date and time
                              March 21, 2014, 2:35PM
                            • Don't forget about the arctic ice. It's growing rapidly!!

                              http://www.youtube.com/watch?v=9OBCXWAHo5I

                              Astonishing!

                              Commenter
                              Allan
                              Location
                              Prahran
                              Date and time
                              March 21, 2014, 2:42PM
                          • Oops so much for the champagne at real estate agencies in Sydney. The Chinese ain't coming. They are starting to sell, in panic as China's credit crunch takes hold. Bubble property in Australia will go POP POP POP! Ha ha ha!

                            Commenter
                            henry
                            Location
                            melb
                            Date and time
                            March 21, 2014, 12:45PM
                            • @henry...It won't be funny when it happens henry. The whole economy hinges on it and has ridden it to death for decades. When it unfolds it will not be funny for Australia or you or me. Watch the banks be bailed out with yours and my money after they caused it won't amuse me. Watching politicians say who could have known won't amuse me either. The unwinding will be very painful for this silly country.

                              Commenter
                              JohnBB
                              Date and time
                              March 21, 2014, 1:21PM
                            • is this true - I know they are selling up in HK, but here as well !! exciting times

                              Commenter
                              JB
                              Location
                              Boronia
                              Date and time
                              March 21, 2014, 1:33PM
                            • Well then, I guess some people may start taking Harry Dent's statements more seriously lol.

                              Commenter
                              Matt
                              Date and time
                              March 21, 2014, 1:38PM
                            • No, seriously it will be fun and I can't wait for prices to come down back to earth.

                              Commenter
                              henry
                              Location
                              melb
                              Date and time
                              March 21, 2014, 1:50PM
                            • johnbb if the whole economy hinges on it, then the sooner it happens the better.

                              time to accept Australians got greedy and do something about it. Oh it will hurt some, but in the long run the sooner we get a crash the better for the majority.

                              Commenter
                              JB
                              Location
                              Boronia
                              Date and time
                              March 21, 2014, 1:55PM
                            • not where I spend some of my time. just had his jetty for his mega boat officially approved today. I love council online council agendas.
                              will have to wait and see what the plans for his eco resort look like. due to go on public submission around easter.
                              somewhere around $100 mill all up.

                              Commenter
                              smilingjack
                              Date and time
                              March 21, 2014, 2:08PM
                            • An entire generation of Australians would like nothing more than to watch the property bubble (ie. the country) to collapse.
                              It'll happen and when it does, remember who was to blame.
                              Not boomers, not NIMBYs not even 'the chinese'.
                              It was YOUR banks and YOUR government.
                              It was usury.

                              Commenter
                              Gen Y
                              Location
                              Perth
                              Date and time
                              March 21, 2014, 2:48PM
                            • @Gen Y....They'll find a way to sacrifice your generation even more to avert it a lot longer yet.

                              Commenter
                              JohnBB
                              Date and time
                              March 21, 2014, 3:30PM
                          • If the Greens are not going to oppose population growth, then stop opposing development. You just simply can't keep opposing one while ignoring the other.

                            Do you see the problem here PC GenY?

                            Commenter
                            JohnBB
                            Date and time
                            March 21, 2014, 12:45PM
                            • If there is any method at all to the madness in the Greens' policies, from what I can tell they want Australians to have fewer children and they want less economic migrants, but they want to increase the intake of asylum seekers. Since asylum seekers generally find it very difficult to contribute to economic life in Australia I think the ultimate goal of the Greens is to re-tribalise the continent. It's a astonishing that such a party can exist at all.

                              Commenter
                              Dr No
                              Location
                              Sydney
                              Date and time
                              March 21, 2014, 2:09PM
                            • "Since asylum seekers generally find it very difficult to contribute to economic life in Australia"

                              LOL, you've never been to Footscray market. Victoria Street or Cabramatta.

                              Commenter
                              Allan
                              Location
                              Prahran
                              Date and time
                              March 21, 2014, 3:04PM
                            • @Dr No. The extremists wish to level country towns and let it all return to nature. Not all Greens agree with this but allow themselves to be shouted down with insults such as ''denier''. Tasmania is a classic where the ALP allowed the Greens to push this fair state in the direction of paupers with a begging bowl. They then demanded that the other states bail them out. Meanwhile the advent of the Libs will see excessive bushland devastated as the pendulum swings back the other way.

                              Commenter
                              Wally
                              Location
                              Flynn
                              Date and time
                              March 21, 2014, 3:26PM
                            • I love Cabramatta....Best food and people anywhere in the world.

                              Commenter
                              JohnBB
                              Date and time
                              March 21, 2014, 3:27PM
                            • I've never been to Footscray market, but I know that a lot of the folks who arrived as asylum seekers in the 70s contributed to economic life very quickly after arrival, and still do. However, according to ABS statistics that is no longer the case. With welfare now being an option to them and the source countries being completely different, it takes on average up to 10 years to get the current crop into the workplace. There is absolutely no logic to the Greens' policies other than that they want to re-tribalise the continent.

                              Commenter
                              Dr No
                              Location
                              Sydney
                              Date and time
                              March 21, 2014, 3:31PM
                          • 12.19: Man who sells coal says we should keep using coal. Astonishing!

                            Commenter
                            Fred
                            Date and time
                            March 21, 2014, 12:22PM
                            • Sure, you clearly do not like his message.

                              But is he wrong? Where?

                              What is the alternative to large, affordable base load electricity generation (in the absence in nuclear energy)?

                              Commenter
                              Roadsta
                              Location
                              Brisneyland
                              Date and time
                              March 21, 2014, 12:29PM
                            • The 'renewables can't provide base load' myth is so often repeated by vested interests, that some people take it as fact.

                              There a million sources I could refer to, here is one:

                              http://thegenerator.com.au/renewables-can-do-24-hour-base-load-anywhere-anytime/

                              Commenter
                              Fred
                              Date and time
                              March 21, 2014, 12:55PM
                            • Why do you have to knock this bloke for doing his job @Fred? Surely as a share-holder in different companies you would want your holdings given every opportunity to appreciate. I would have thought that was fairly reasonable thing for him to do

                              Commenter
                              Half Back Flanker
                              Location
                              Prahran
                              Date and time
                              March 21, 2014, 12:55PM
                            • monster solar farms which will take 1/100th of the time to build. in case you havent noticed we have several million kms of vacant high sun low rain / cloud areas free.
                              before you prattle on about solar cant do base load etc. yes it can.
                              see The Gemasolar project and its near 3 years old already
                              just because stralya does its best to stymy solar development that doesnt mean other parts of the world havent gotten on with it.
                              dear china I would like to buy 1 million of your finest solar panels and as the stralyan government is the buyer I wont impose a tariff. cheap cheap cheap.

                              Commenter
                              smilingjack
                              Date and time
                              March 21, 2014, 12:56PM
                            • What is stupid about his statement is that it is unnecessary as the world consumption of coal is set to continue its recent large increases anyway. See recent statement by chief economist of IEA.

                              Commenter
                              BigKev
                              Location
                              Caringbah,NSW
                              Date and time
                              March 21, 2014, 12:57PM
                            • Coal & tobacco, both leave a nasty residue in the lungs that will kill you. There was a belief that we couldn't live without tobacco, but look what happened.
                              I'm sure that China can't wait to buy more coal from RIO to add to its polluted air. They will be looking for alternatives and RIO is going to have to adapt to that rather than fight it.

                              Commenter
                              mitch of ACT
                              Date and time
                              March 21, 2014, 1:15PM
                            • There is no hope of Australia moving away from coal while we have a COALition gov't. Yet another mistake for Labor to fix.

                              Commenter
                              mitch of ACT
                              Date and time
                              March 21, 2014, 1:23PM
                            • @Fred....haven't looked into it deeply but as an electrical engineer, I reckon base load could be covered during the day by solar in locations all over the place (on peoples roofs). They seem to be negative users.

                              Commenter
                              JohnBB
                              Date and time
                              March 21, 2014, 1:25PM
                            • You might want to check this first before making bold predictions about the growth in the use of coal. http://www.bloomberg.com/news/2013-12-16/coal-demand-growth-to-slow-in-next-five-years-on-china-iea-says.html
                              "Coal in its current form is “unsustainable,” even assuming that more efficient heat and power plants will be built, as it will contribute to pushing global temperatures above the agreed target of a long-term increase of by 2 degrees Celsius (3.6 degrees Fahrenheit), Maria van der Hoeven, executive director of the IEA, said in a foreword to report. "

                              Commenter
                              mitch of ACT
                              Date and time
                              March 21, 2014, 1:39PM
                            • Renewable energy is expensive and our RET is forcing up the cost of electricity to everyone.
                              Gemasolar's cost is $33 per average Watt,which is several times higher than the cost of wind,geothermal,nuclear and coal.
                              Greenland is dreamland.

                              Commenter
                              Chumlee
                              Date and time
                              March 21, 2014, 1:43PM
                            • time to go nuclear, time to support Paladin Energy

                              Commenter
                              John
                              Location
                              Its a buy
                              Date and time
                              March 21, 2014, 2:13PM
                          • sold 170000 IMC @ 0.008 bit o pocket money.

                            Commenter
                            BearShapedBull
                            Location
                            MugPunters Lounge
                            Date and time
                            March 21, 2014, 12:17PM
                            • what did you buy them for?
                              what was the stamp duty and brokers fees buying them and the brokers fees and capital gains on the way out?

                              Commenter
                              smilingjack
                              Date and time
                              March 21, 2014, 12:58PM
                            • who r u the ATO?
                              jumped on @ 0.005,for the rights issue 11 for 6 but didnt get the paperwork in time so missed it [dammit]decided out.
                              brokerage on etrade pro works out $12 in/$12 out...cgt will yet to be determined,coupla right offs pending from Minara,RHI and ARU.

                              Commenter
                              BearShapedBull
                              Location
                              MugPunters Lounge
                              Date and time
                              March 21, 2014, 1:19PM
                            • $13.60 worth?

                              Commenter
                              JohnBB
                              Date and time
                              March 21, 2014, 1:31PM
                            • for Jack and John

                              -$862 + $1348 = $486 before tax.
                              Well done BSB on making a +50% profit.

                              Commenter
                              Learner
                              Location
                              Melbourne
                              Date and time
                              March 21, 2014, 1:59PM
                            • 170000 IMC @ 0.008 = $1,360.

                              Commenter
                              confused
                              Location
                              syd
                              Date and time
                              March 21, 2014, 2:04PM
                            • decimals John...$1360.00 tks.

                              Commenter
                              BearShapedBull
                              Location
                              MugPunters Lounge
                              Date and time
                              March 21, 2014, 2:29PM
                            • Right you are...Appologies.

                              Commenter
                              JohnBB
                              Date and time
                              March 21, 2014, 4:41PM
                          • Craig James has the temerity to accuse ML blog of unprofessionalism??

                            "Commsec's claim that it has used the most accurate measure of housing affordability is bogus. Commsec's measure of disposable income is an average taken from the quarterly national accounts, which includes a whole bunch of non-disposable measures like compulsory superannuation contributions, as well as owner-occupied imputed rents, neither of which are available to fund current consumption. Accordingly, average incomes have been inflated.

                            Moreover, Commsec has compared the median dwelling price against average disposable incomes - the wrong approach since average incomes are skewed upwards by the small proportion of very high income earners. Again, this has the effect of skewing the ratio downwards."

                            http://www.abc.net.au/news/2014-03-20/van-onselen-complaints-about-housing-affordability-are-warranted/5334128

                            Suck it up Craig.

                            Commenter
                            Allan
                            Location
                            Prahran
                            Date and time
                            March 21, 2014, 12:17PM
                            • Allen, despite your quibbles, you fail to see the big picture and the facts speak for themselves. Australia has one of the worlds highest levels of Home Ownership , currently at 70%. This compares with the U.S which in the March 4th edition of the Washington Post was quoted at 61% and falling. Among the Rich Western nations, our Home ownership is higher than Britain, France, Germany, Denmark, Switzerland and Japan.
                              http://en.wikipedia.org/wiki/List_of_countries_by_home_ownership_rate

                              We are also , for the 2nd year in a row , the World's Richest People as measured on a mean per person basis , with mean wealth per person in 2013 of US$219,000 (this compares to US$45,000 per person in the U.S)Also we are the 4th most equitable country i the world as measured by the difference between our median and average wealth.

                              http://www.theguardian.com/business/grogonomics/2013/oct/14/australia-wealth-top-world

                              Oh..let's not forget Quality of Life...Australia ranked #1 in the World for 2012 and 2013 and measured such categories as :11 categories, including income, housing, jobs, community, education, environment, civic engagement, health, life satisfaction, safety, and work-life balance.

                              Read more: http://www.businessinsider.com/top-countries-on-oecd-better-life-index-2013-5?op=1#ixzz2wYkoOlxc

                              So please Allan , Get a grip! Things are not as bad as you may want to think or feel and we are NOT doing it hard...nor badly in any sense of he word. Before you shit in our nest, I suggest you take a good hard look at most of the other countries in the World and realise how bloody lucky you and all of us are. EVERY Australian is in the top 5% of wealthiest people on the Planet.

                              So stop Whinging!

                              Go here and see how YOU stack up against the other 7 BILLION people who share this world

                              http://www.globalrichlist.com/wealth

                              You have no bloody Idea.

                              Commenter
                              Loomy
                              Location
                              Thailand
                              Date and time
                              March 21, 2014, 1:24PM
                            • well said. totally agree!

                              Commenter
                              oli
                              Location
                              sydney
                              Date and time
                              March 21, 2014, 1:34PM
                            • "The 2011 ABS Census recorded that 67 per cent of Australian households are owner occupiers. The number of households who own their home outright has fallen since 1996 (Census of Population and Housing 2015.0 1996) from 40.9 per cent to 32.1 per cent - See more at: http://www.ahuri.edu.au/themes/home_ownership#sthash.nNrvhi96.dpuf"

                              http://www.ahuri.edu.au/themes/home_ownership

                              Your figure of 70% came from Wikipedia and is wrong.

                              Oh and I am not gloomy at all far from it and you fail to see the big picture. If we are so rich why is household debt at over 150% of income?

                              A lot of this supposed wealth you are quoting comes from inflated house prices. That inflation has been fuelled by huge personal debt, up near the highest in the world.

                              And by a massive resources boom that is now over. Why do you think Australia's most respected Sinophile and internationally renowned economist, Ross Garnaut is warning Australia to prepare for a "secrious decline in living standards?

                              "Before you shit in our nest"

                              No need for that language and it only serves to reveal you as someone who is threatened by the growing backlash against the negative gearers, pollyanna little landlords and industry spruikers.

                              Commenter
                              Allan
                              Location
                              Prahran
                              Date and time
                              March 21, 2014, 2:58PM
                            • depends what your definition of "home owner" and "owner occupied" means.

                              generally this means someone who is not renting.

                              it does not mean someone who owns the property outright, ie: no mortgage or finance owing.

                              I read somewhere recently that actual Australian home ownership (non leveraged) is about 30%

                              Commenter
                              in debt
                              Date and time
                              March 21, 2014, 3:21PM
                          • I wonder whether Metcash is finally getting the message that their customers have been screaming for years - too expensive, private label products priced way out of the market, too arrogant and woeful service. A strong supplier is definitely needed to give smaller stores an alternative and not having to actually buy from Coles and Woolies as wholesalers, and hopefully the new team can deliver.

                            Commenter
                            dexxter
                            Location
                            melbourne
                            Date and time
                            March 21, 2014, 12:01PM
                            • That sounds like the Aldi model.

                              Commenter
                              mitch of ACT
                              Date and time
                              March 21, 2014, 12:11PM
                          • IInet up for grabs after the founder/CEO leaves,opening up a potential take over.Hes done a fantastic job and seen the company through the difficult tech boom/bust and GFC.Good luck to Mike Malone.

                            Commenter
                            BearShapedBull
                            Location
                            MugPunters Lounge
                            Date and time
                            March 21, 2014, 11:58AM
                            • Considering the number of companies that IINET has taken over in recent years, a takeover of IINET (might be opposed by the ACCC as too much of a reduction in competition as only the major ISPs would be capable of such a transaction.

                              Commenter
                              mitch of ACT
                              Date and time
                              March 21, 2014, 12:14PM
                            • I think TPG have been circling,but may have spent all the cash on AAPT from NZ Telecom.

                              Commenter
                              BearShapedBull
                              Location
                              MugPunters Lounge
                              Date and time
                              March 21, 2014, 12:55PM
                          • I was passing by a few Cootes truck yesterday and I thought to myself, their board has cried loudly on NSW/VIC road safety’s continuous harassment since the big fire ball. Along with the avalanche of defective notice, should we decide that doesn’t this mean the enforcement/inspection guys have not been doing their job? I mean, if not for the accident, wouldn’t Cootes are still `moving Australia’ pretty fine? Either the safety inspection system is broken or there is a statistical miracle that all of them Cootes trucks are become `defective’ right after the accident.

                            Commenter
                            Patrick & Lorreta
                            Location
                            Melbourne
                            Date and time
                            March 21, 2014, 10:54AM
                            • Mate, this is classified as red tape and was recently cut by the Government's red tape committee.

                              Commenter
                              Viking
                              Location
                              Sydney
                              Date and time
                              March 21, 2014, 11:01AM
                            • This is how it works: Something bad catches the headlines, the minister gets on the blower, there's a big crackdown for a while, somebody, usually deserving, cops it, then the public forget about it and its back to ticking boxes.

                              Commenter
                              Catch 22
                              Date and time
                              March 21, 2014, 11:23AM
                          • can someone explain to me why the aussie hasn't gone down against the USD in the last week?
                            surely these factors would bring it down??
                            a - commodity demand down
                            b US interest rates due to rise
                            c US economy outlook improving
                            d China outlook negative

                            confused

                            Commenter
                            Genghis
                            Location
                            Lounge
                            Date and time
                            March 21, 2014, 10:34AM
                            • Erratic ?? RBA jawbone praps?
                              Rates easing is at an end may be interpreted as rates will rise?

                              IDK

                              Commenter
                              mushy
                              Date and time
                              March 21, 2014, 10:56AM
                            • Housing boom baby!

                              Oh and the carry...sigh

                              Commenter
                              Opinion Only
                              Location
                              Melbourne
                              Date and time
                              March 21, 2014, 10:57AM
                            • To take the shorters money....bout time they paid.

                              Commenter
                              BearShapedBull
                              Location
                              MugPunters Lounge
                              Date and time
                              March 21, 2014, 11:48AM
                            • There might be some merit in the fact that some big economists in Australia have come out and called the end to rate cuts in Australia's future, which would support our currency.

                              Commenter
                              DraftTrader
                              Location
                              syd
                              Date and time
                              March 21, 2014, 12:04PM
                            • Australia is a more desirable place to live.

                              Commenter
                              Ryan
                              Date and time
                              March 21, 2014, 12:13PM
                            • Yeah Vienna, Rome, London, Paris and New York are such dumps.

                              Commenter
                              Allan
                              Location
                              Prahran
                              Date and time
                              March 21, 2014, 3:23PM
                          • I've just re-read the Eds critique of Commsec chief economist Craig James around housing affordability.

                            Your analysis looks reasonable and objective and I think his response is overdone.

                            Ed's - keep up the good journalism and don't let his response dissuade you from questioning similar suspect data that doesn't pass the smell test.

                            Commenter
                            Long Buffett
                            Date and time
                            March 21, 2014, 10:32AM
                            • The retail entitlement for Mermaid Marine (MRM) closes today at 5pm. Currently $2.33 & entitlement is $2.40.

                              From next week onwards there will be no reason to keep the share price depressed under $2.40 and the big players should be able to pick up big parcels off-market at $2.40 or less without jacking up the share price.

                              I can be hopeful that starting from next week, we can start moving up towards 2.50 to 2.75 range (within the next couple of months).

                              Commenter
                              GS
                              Date and time
                              March 21, 2014, 10:29AM
                              • GS , yep I agree re the reprice to the 2.50/75 range ... its been a fun stock to trade over the last week or so, buying below the offer level ,then selling out as we approach 2.40 ... just left with my core holding now and will be patient

                                Commenter
                                Chris
                                Location
                                Sydney
                                Date and time
                                March 21, 2014, 10:49AM
                            • Good ol' Gina is pretty brave to invest in iron ore at this point in time. Good luck to her, but it's not entirely clear to me that iron ore will fetch above average prices in the next 20 years.

                              Commenter
                              Dr No
                              Location
                              Sydney
                              Date and time
                              March 21, 2014, 10:21AM
                              • Gina too late to the RIO/BHP/FMG party. If this backfires she actually might have to go out and get a job.

                                Commenter
                                mitch of ACT
                                Date and time
                                March 21, 2014, 12:37PM
                            • Roy Hill:

                              I fear this will end in tears. To me, this appears too late and too expensive. The low part of the price cycle (remember, commodities do this...) will hurt this business, perhaps fatally.

                              Does anyone know how much exposure each of the big 4 banks have to this debt consortium?

                              R.

                              Commenter
                              Roadsta
                              Location
                              Brisneyland
                              Date and time
                              March 21, 2014, 10:20AM
                              • I almost hope it does end badly. If she loses everything I would like to see her work hard.

                                Commenter
                                Elric
                                Location
                                Melbourne
                                Date and time
                                March 21, 2014, 12:14PM
                              • If it does end badly, there will be a lot of other people who will feel the pain far more than Gina will....

                                Commenter
                                Confused
                                Location
                                syd
                                Date and time
                                March 21, 2014, 12:34PM
                              • Confused, that's why i said "almost". The immigrant workers will be boated home, the banks will be burnt but she be a billionaire regardless. I am sure Warwick Fairfax isn't living in a dumpster despite ending an empire. The privileged are so for life regardless of misadventure, they even get off one punch assaults in Queensland.

                                Commenter
                                Elric
                                Location
                                Melbourne
                                Date and time
                                March 21, 2014, 12:45PM
                              • Never wish ill of anybody!

                                On the positive side look at the employment this is creating and giving people an opportunity to improve their standard of living.

                                Commenter
                                Half Back Flanker
                                Location
                                Prahran
                                Date and time
                                March 21, 2014, 1:00PM
                            • Wow Craig James is a bit precious!

                              Nobody is immune from a bit of scrutiny mate. The Eds on this blog do an amazing job. Unlike Commsec they don't have their own barrow to push.

                              Commenter
                              Fred
                              Date and time
                              March 21, 2014, 10:17AM
                              • Well done Eds! Mind you it was pretty obvious to anyone who has a smidgeon of maths knowledge that you don't compare AVERAGE wages, with MEDIAN house prices.

                                Commenter
                                Catch 22
                                Date and time
                                March 21, 2014, 11:13AM
                            • @Irish Phil from yesterdays comment of "it is a property ladder, buy a place for 500k and trade up in 2 to 3 years". Terrible idea, I'm not going to easily recover the +45k i will blow on stamp duty/upfronts on purchasing two places for 500k and then 700k (not to mention the extra deposit you need to save in the meantime while your budget is stretched to the limit). Maybe it was easier a few years ago when you didn't have pay stamp duty on sub 500k, or when face values of properties were much cheaper. But now "jumping up the ladder" comes with considerable costs that people from the inside looking out (so to speak) don't really contemplate.

                              Commenter
                              DraftReader
                              Location
                              syd
                              Date and time
                              March 21, 2014, 10:11AM
                              • You might think it's a terrible idea but that's how it's done.

                                You NEED capital growth (or saving/paying down the existing loan) to achieve this. If you want a fancy expensive house/location, you need to work up using this method.

                                Or magically save it in mostly "cash" & hope there is no capital growth by the time you've finished saving.

                                Stamp duty is nothing in the scheme of things (providing you are lucky to get the growth as in the past decades).

                                Commenter
                                GS
                                Date and time
                                March 21, 2014, 10:37AM
                              • So basically nobody has the luxury of TIME to save and buy the house they want. It'd be easy if we did. You got the play the game as it stands.

                                Commenter
                                GS
                                Date and time
                                March 21, 2014, 10:42AM
                              • Maybe Irish Phill can let us know how property ladder fared in his native Ireland? All those 500K Euro properties bought in 2005 must be double in value now?

                                Oh but we are different here, we have no avaliable land (apparetnly AUS is smaller than Ireland) We have Mining Boom (Its Over) and we have rich Chinese (Same ones Selling up in HK at 20% loss) We have record low rates (Set to go UP)

                                Property ladder, More like a number of ladders arranged into a nice pyramid.

                                Commenter
                                DJ77
                                Location
                                Sydney
                                Date and time
                                March 21, 2014, 10:48AM
                              • GS, how does capital growth close the gap though? If the house I bought 3 years ago is $500k and the one I really wanted to own some day was $700k, if my house value goes up to $650k then the house I want is now about $910k. I went from a $200k gap for my dream home to a $260k gap?

                                Commenter
                                Gareth
                                Location
                                Sydney
                                Date and time
                                March 21, 2014, 11:03AM
                              • Because if you do nothing both will move up without you having any stake in either.

                                Using LEVERAGE to borrow the cheaper property and paying down the loan is better than just using savings alone and having BOTH properties move to a range that is unaffordable.

                                The leverage you get from the bank COMBINED with the CAPTIAL GROWTH (as I said earlier... "IF" you get it as in the past decades) compared to the money you've managed to save in that time cannot compete with one another.

                                When you sell the current property you are in, yes you will need to get a bigger loan to fund the 2nd purchase of your dream home. No bank will lend you money for your dream house if you can't service it and have a huge deposit for it. Selling your current home will provide the deposit (and then some). You need to do this over 10+years, not 2-3yrs.

                                I've heard of too many people "saving" endlessly for that deposit on the dream house/location, only to keep getting priced out due to the capital growth.

                                Now if you think Australia is done with capital growth, then by all means continue saving. But until things change you got to play the game and be REALIST and not use 2-3 years as an upgrade figure. More like 10-15years.

                                Commenter
                                GS
                                Date and time
                                March 21, 2014, 11:26AM
                              • We're all waiting in rapture for the GS response

                                Commenter
                                Gen Y
                                Location
                                Perth
                                Date and time
                                March 21, 2014, 11:47AM
                              • GS: I agree with your logic of jumping in and praying that capital growth keeps heading north and trading up in 10 to 15 years, but the idea that was construed to me was buy a cheap place now and flip it in 3 years for a better one. Which if you look at today's scenario for a FHB it is just not valid anymore. This idea was fine 5 to 8 years ago when syd apartment prices were 20% to 30% lower or over 10 years ago when they were 40% cheaper, and you could get concessions on stamp duty (or pay none) etc. and people might pass stamp duty off as a inconsequential cost because its only ~3 - 4% but when that sticker price is high, in real dollar terms it is significant. Playing the property flip game with 250k to 350k properties is fine because the capital invested is only 30-35k upfront, but when you start talking 700k to get into the apartment/flat market in the inner west, you are talking 100k of upfronts there is little room for error.

                                Commenter
                                DraftReader
                                Location
                                syd
                                Date and time
                                March 21, 2014, 12:01PM
                              • GS, thanks for the detailed reply. Yes, that does make more sense. OP used 2-3 years originally which didn't really make sense.

                                Commenter
                                Gareth
                                Location
                                Sydney
                                Date and time
                                March 21, 2014, 12:02PM
                              • This sounds like the typical "better get in now or you will miss out" nonsence that RE sprukers love to peddle to the gulliable

                                If you want a house/aptment then buy one but dont think its a road paved with gold to a life of riches.

                                Think about what it will actually cost you to own in totality for those 10-15 years and then way up the "need" to own something as illiquid as property

                                Commenter
                                dog box
                                Date and time
                                March 21, 2014, 12:09PM
                              • Flipping it in 3yrs might be a bit soon nowadays as price moves are lower better to look at a 5yr position,But dependant on where the property is located as flucuations by suburb are vastly different.Value adding is a great option given that yo have the extra $ to improve,2c worth.

                                Commenter
                                BearShapedBull
                                Location
                                MugPunters Lounge
                                Date and time
                                March 21, 2014, 1:26PM
                            • Sorry but I take issue with your line about Gina Rinehart - "bringing her dream of becoming a miner in her own right a step closer"

                              Rinehart is not and never will be a 'miner'. Owning a mine doesn't make someone a miner any more than being the boss of woolies makes you a check out chick.

                              I know it's semantics, but a real nminer would have a much better understanding of a hard day's work than this woman who tells everybody else to work harder but wouldn't know the concept herself.

                              Commenter
                              Fred
                              Date and time
                              March 21, 2014, 9:54AM
                              • Can you just imagine Gina as a "check-out chick". She would be criticising you for your purchases telling you that if you worked harder you wouldn't be buying Tim Tams and chips because you would never have time to sit on the couch and eat them and you would have more cash to be able to afford salmon & lobster instead of basa fillets.

                                Commenter
                                mitch of AC
                                Date and time
                                March 21, 2014, 10:32AM
                              • Gina Rineheart although "not a miner" would know a lot more about a mining organization that some tit that washes a tip truck day in day out. Geez self entitlement now extends to opinions in this country!

                                Commenter
                                Screen watcher
                                Date and time
                                March 21, 2014, 1:01PM
                            • Southern man, I heard screaming. How long, how long? Australia's embarrassment.

                              http://www.theage.com.au/victoria/yarra-trams-investigates-alleged-racial-abuse-20140320-353s9.html

                              Keep digging holes for Gold.

                              Commenter
                              Neil Young
                              Date and time
                              March 21, 2014, 9:47AM
                              • So Roy Hill... works at $100/T for iron.
                                Wonder what happens at $90/T.
                                With enough 457s it will probably be ok.

                                Commenter
                                Liberator
                                Location
                                SEQLD
                                Date and time
                                March 21, 2014, 9:45AM
                                • Yesterday Markets Live criticised CommSec analysis on housing affordability. The data was from Rismark. The home price data was from RP Data and they cover 100% of transactions. The number of household come from the Housing Industry Association. The income series data was from the Bureau of Statistics. The data is accurate. The analysis is correct. But the journos said the figures didn't add up. They didn't ring to check any details. They said they thought the income data was too high. Perhaps. But the average wage is $74,727. And you can't select abother income estimate from 2012! You need to have a consistent series of data and re-run the analysis. The data used in the report was from the Bureau of Stats. It was correct. Simply the blog post from Business Day was bad journalism and raises questions about accuracy of other data in the blog. They said it didn't matter as it was a blog. Whatever you write or say does matter. I take particular offence to the view that our reports are anything other than professional and unbiased. I'm not paid to come up with sensational stories or drive business. Fact. But you can't denegrate a research report because you felt the figures seemed high. We use the best available data and then assess what it means. Earlier in the blog Markets Live used our analysis on employment without attribution. That speaks for itself. Overall, just disappointed.

                                  EDs: Thanks Craig for your response. We stand by our analysis of the housing affordability data. For the record, at no time did we suggest that accuracy of data or of posts in this blog don't matter. Additionally, we did not question the professionalism or unbiased nature of your reports. Indeed we frequently use your reports in this blog and if we have in the past not quoted CommSec as the source then we apologise for the oversight. We also acknowledge that we should have sought comment from you before publishing yesterday's post.

                                  Commenter
                                  Craig James
                                  Date and time
                                  March 21, 2014, 9:40AM
                                  • Maybe Craig would like to make comment on some of the issues raised here?

                                    http://www.macrobusiness.com.au/2014/03/relax-housings-just-as-affordable-as-10-years-ago/

                                    Commenter
                                    tenant
                                    Date and time
                                    March 21, 2014, 10:22AM
                                  • But Craig, regardless of the accuracy of the data, isn't it poor methodology to compare the average income with the median property price?

                                    Both of these data sets are skewed at the top end by high incomes/prices. Surely you should compare average vs average or better yet, median vs median?

                                    Commenter
                                    Jimmy
                                    Date and time
                                    March 21, 2014, 10:23AM
                                  • EDs you need to stand your ground your analysis was spot on. Using MEDIAN house vs AVERAGE wage is misleading and "disapointing".

                                    Commenter
                                    DJ77
                                    Location
                                    Sydney
                                    Date and time
                                    March 21, 2014, 10:31AM
                                  • Craig, as pointed out here and elsewhere, you made some schoolboy errors and have been called out for it.

                                    On top of that making it a generational comparison i.e. "Gen Y can't blame their parents or grandparents" and only using a 10 year period is disingenuous.

                                    Make it appropriate to the generations being compared today vs 30-60 years ago and you will find that housing is more than twice as expensive (on a disposable income basis) than it was then.

                                    I would strongly suggest you retract your paper as misleading

                                    Commenter
                                    Alby
                                    Location
                                    Sydney
                                    Date and time
                                    March 21, 2014, 10:38AM
                                  • Hi Craig. Sorry I agree with comments on this blog questioning your figures, your methodologies, and your conclusions.

                                    While we have you here can you please tell me why Commsec charges $29.95 up to $10,000 transaction value and 0.31% (above $10,000) to trade Australian stocks but Interactive Brokers charges just $6 to do the same thing?

                                    Commenter
                                    Gordon Akman
                                    Location
                                    Broadbeach
                                    Date and time
                                    March 21, 2014, 10:47AM
                                  • All I know is that most entry level 1 bedroom apartments in Canberra cost the same amount as the supposed "median" $450,000 which CJ claims is the cost of housing.

                                    And why compare average income to median house prices. After analysing the ABS statistics economist Matt Cowgill found:

                                    "The typical Australian income, after tax, is $43 100 for a single person, or $90 510 for a couple with two kids".

                                    The average is $112,000 a year? You've got to be joking.

                                    Commenter
                                    Basic
                                    Date and time
                                    March 21, 2014, 10:58AM
                                  • And while we are at it, let's remember that it's all very well to use household income, but in my dad's day when he paid about 3.5x the average salary to buy a house, he also happened to be the sole source of the household income (as was the case with many families at the time). Household income these days is mostly dual-income, and part of that income often also has to be diverted to childcare anyway. Do the maths off the single highest income earner in a household from the 1960s to today, and you'll get around the 8x multiple we all recognise it to be.

                                    Commenter
                                    Gareth
                                    Location
                                    Sydney
                                    Date and time
                                    March 21, 2014, 11:13AM
                                  • OZ - where there is nothing else to talk about but housing affordability zzzzzzz

                                    if only we had some real issues in society

                                    Commenter
                                    Jess
                                    Location
                                    Burwood
                                    Date and time
                                    March 21, 2014, 12:11PM
                                  • Comparing medians vs averages is either an error or with an agenda. Statistically every man woman and child in Australia is $1000+ dollars wealthier on "average" because Gina's wealth is so large. Can a check out chick spend that on a house? Damn lies and statistics.

                                    Commenter
                                    Elric
                                    Location
                                    Melbourne
                                    Date and time
                                    March 21, 2014, 12:22PM
                                  • "The typical Australian income, after tax, is $43 100 for a single person, or $90 510 for a couple with two kids"."

                                    Nope. Median household income is @ $68K.

                                    Commenter
                                    Allan
                                    Location
                                    Prahran
                                    Date and time
                                    March 21, 2014, 3:45PM
                                • Gina Reinhardt, through the Roy Hill announcement is further confirmation that RIO and BHP are very attractive propositions, even at their current prices. Any lower and they will be irresistible buys, surely!

                                  Commenter
                                  "P" Plater
                                  Location
                                  Gundagai
                                  Date and time
                                  March 21, 2014, 9:39AM
                                    • How so? I think I agree, but just wondering your reasoning?

                                      Commenter
                                      Fred
                                      Date and time
                                      March 21, 2014, 10:00AM
                                    • As you can see from my screen name @ Fred, I am no expert, but I took into consideration -
                                      1) That all the big Financial Institutions are involved
                                      2) A project of this size confirms confidence in the product and it's market.
                                      3) Production costs of BHP and RIO are low
                                      4) Historical share prices suggest they are attractive, although there is some recent history of lower prices
                                      5) China still has a huge demand for our iron ore even if the real boom times are gone.
                                      6) From what I can glean, the Chinese are not great believers in stock piling, so when they need ore they will pay inflated prices (subjective I realise)
                                      7) Both have cut costs and pay a reasonable dividend
                                      8) Capital growth of 15-20 % is not an unreasonable expectation for both.

                                      I'm not sure where the $AUD will go, but if it goes to $0.80 and stays around there, the financial upside will be significant.

                                      Do you have anything further we need to consider?

                                      Commenter
                                      "P" Plater
                                      Location
                                      Gundagai
                                      Date and time
                                      March 21, 2014, 10:32AM
                                    • Also BHP is paying down its debt and once it gets this to $25 billion (supposedly within a few months) it will start returning more money to shareholders through share buybacks and increased dividends. I'm hoping to increase my (tiny) stake before then, just sweating on the price coming down a bit further first!

                                      Commenter
                                      Fred
                                      Date and time
                                      March 21, 2014, 10:51AM
                                    • BHP short at $38.40 was a good call.

                                      Demand for iron ore will drop off because China is heading for a economic melt down due to 15 years of massive uneconomic infrastructure spending.

                                      Even the 7.5% growth rate is under threat when it already was shifting to services which won't require anywhere as much iron ore.

                                      Commenter
                                      Allan
                                      Location
                                      Prahran
                                      Date and time
                                      March 21, 2014, 2:46PM
                                  • Yesterday I posted this graph. Overnight I added a few lines and it makes for concerning viewing. My question for you clever folks is;

                                    a) Will the housing/GDP ratio return to trend? Why/why not?

                                    b) If yes, how long will it take to get there?

                                    http://postimg.org/image/6hr4wq5n1/

                                    Commenter
                                    Jimmy
                                    Date and time
                                    March 21, 2014, 9:24AM
                                    • Trends are not set in concrete. They may run for a time, even for years, but trends fail and new patterns emerge. It is possible a new channel has developed in the graph posted. However on that graph the new pattern is too short to be certain.

                                      It may proceed in the same direction and never return to the red line.

                                      Commenter
                                      Learner
                                      Location
                                      Melbourne
                                      Date and time
                                      March 21, 2014, 10:38AM
                                    • No doubt trends are not set in concrete.
                                      But they also don't change without a reason.

                                      A few possible reasons I could see are
                                      - Increased prevalence of dual income households (although this doesn't really explain the liftoff around 1998)

                                      - Changes to CGT in the late 90's (While this matches the liftoff, it doesn't explain the shear size of the rise in property values. I mean, did a tax change really make property twice as valuable in 2003 as it was in 1997?)

                                      - Building industry inflation & inflation is compliance. Could explain some of the increase but its not obvious to me how much of an impact that would be and what the effects relative to GDP would be.

                                      If you ask me, previous housing policies have brought forward growth that would have happened anyway, they haven't stimulated new growth.Therefore, the likely outcome is a slight decline in real housing prices (i.e. growing slower than inflation) back towards the trend over the next 5- 10 years.

                                      My 2 cents.

                                      Commenter
                                      Jimmy
                                      Date and time
                                      March 21, 2014, 12:17PM
                                    • Also worth noting that the two previous times (1963 & 1975) on that graph that housing/GDP ran ahead of the trend it was followed by dips below trend of similar magnitude (1970 & 1988). Now, I don't want to say that is likely but if it were to happen again that would be a colossal drop.

                                      Commenter
                                      Jimmy
                                      Date and time
                                      March 21, 2014, 12:22PM
                                    • The prime reason is the 30 year credit bubble.

                                      Commenter
                                      Allan
                                      Location
                                      Prahran
                                      Date and time
                                      March 21, 2014, 3:41PM
                                  • I wonder how long before I can pick up Metcash (MTS) for $2.50 or less?

                                    Commenter
                                    GS
                                    Date and time
                                    March 21, 2014, 9:18AM
                                    • What are your thoughts on the transformation plan for MTS gs?

                                      Commenter
                                      Stoja
                                      Location
                                      GC
                                      Date and time
                                      March 21, 2014, 9:35AM
                                    • It wil be interesting to see how their price goes today. I expect it to tumble after the earnings downgrade yesterday but the restructure information today may buoy it a little if the market likes it. I still have a small holding but sold out the majority of my stake (at a loss) some time back.

                                      Commenter
                                      Grinch
                                      Date and time
                                      March 21, 2014, 9:39AM
                                    • MTS cutting it's divided is like taking David Warner's cricket bat away from him. The only reason to say anything positive about it is gone.

                                      Commenter
                                      Sticks
                                      Date and time
                                      March 21, 2014, 9:50AM
                                    • You will probably pick them up cheaper. Risky investment. Someone said yesterday that they can't compete with Woolies and Coles, but they also have Aldi, who is giving the other 2 a run for their money. Reduction in dividends also not good news for shareholders unless they believe in the long term future and have a lot of patience. I wouldn't go there.....

                                      Commenter
                                      confused
                                      Location
                                      syd
                                      Date and time
                                      March 21, 2014, 10:00AM
                                    • I can't believe in any "plan" they come up with until they actually prove themselves.

                                      I've been hearing it for too long with these guys, however I'm willing to pick it up substantially cheaper and give them a chance though.

                                      Commenter
                                      GS
                                      Date and time
                                      March 21, 2014, 10:05AM
                                  Comments are now closed