We’re being a little dramatic, we know. Last week’s note stressing the closeness to the recessionary precipice on which Australia currently stands is still being circulated and we still stand behind it. (The note, not the precipice) We, as a country, are in real trouble and the market is screaming that at us as well.
According to ancient investment legend, “Sell in May & go away” now gives way to the “June swoon” and we reiterate that if you’re making investment decisions based on rhymes you need to rethink your strategy.
With reports of a third aircraft carrier heading to the Korean Peninsula maybe it’s time for a little levity. I stress that, although significant, the risk of nuclear war isn’t the most immediate risk to local equities markets at this current point in time.
“The year 1916 was cursed; 1917 will surely be better”
Apparently this was a quote from Tsar Nicholas II’s diary. Whilst there is some debate as to the origin and authenticity of the quote I’m happy to use it here regardless. Please keep it, Brexit & Trump in mind while you read on as we present to you VFS Group Investment Committee’s “French Scenarios.” (Enjoy)
Unsurprising to most, a large part of my upbringing was spent watching British TV comedies. As much as this helped shape (warp) my sense of humour it also has helped me understand the British regard toward Europe as a whole.
Ah, March for the Australian investor. What a beautiful time to be in the markets. Just close enough to the New Year for the Christmas rally to be a fond memory and just far enough away from the “Sell In May & Go Away” crowd to start getting on their soapbox.
To tee off there’s been some serious rumblings regarding Harvey Norman this week. We all would have read about it and/or heard about the recent batch of bad news. Anyone who doesn’t know my thoughts on Harvey’s I ask you to please read my last seven months of work on the space. Harvey Norman is a dead man walking even without the alleged accounting scandal & ASIC investigation hanging over their head.