Thar she blows:
Tearaway ASX busts post-GFC high
Posted by Houses and Holes in Australian Shares on February 14, 2013 | 25 comments
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Quick, get in, or forever be priced out!
This has to be attracting specufestors away from housing though, surely?
Alternatively they could be using some of their ‘equity mate’ to get into the market.
With the market at this level the RBA will need to work hard to justify another rate cut.
Bull markets are like the Honey Badger – they don’t give a shit.
So the market is going one way and earnings is going the other…..so which gives first?
Does anyone know where i can find market statistics such as the PE ratio of the ASX200 etc. so I can get a sense of whether the market as a whole is over/undervalued? Thanks
TD
In an era of free money – PE ratios need to be adjusted to a free money norm – so don’t think of normalising PE ratios with historic data. The US has never seen access to credit at below inflation rates, this is an historic aberration.
Central Banks have basically given a free call option on growth to any company with a sustainable product.
That makes sense. As interest rates are lowered corporate earnings become more valuable compared to other investment alternatives pushing the price of shares up. A pure PE ratio analysis would ignore this fact.
19 times I think
Correct 8mill!
Re P/E At zero interest rates everything in the world is worth infinity!
Good to see your calls for lower interest rates are having the desired effects (combine this with house price inflation). $AU today?
give it to me ASX!!
poised for a crash…
Rio has just posted $3 billion loss, how does that generate a return on your investment?
Big for Banksters are +40% of ASX index, dependent on income from house prices which are down and lending for homes at record lows.
Aust Treasury just advised next 2 years GPD below trend growth.
Fundamentals are out the window, this can only end in tears!
Correct me if I’m wrong but Rio’s results were posted after the close. So maybe you should leave your whole 2% jump, 6 month term deposit mumbo jumbo until you see what happens to the stock tomorrow.
Rio’s operating profit was strong. Over $9 billion. The loss was just a write down on the value of their aluminium investment.
Freight Train.
Just goes to show how broken is the financial system post 2008. I think too many people are taking the blue pill.
Memories of Gerry Harvey’s nightly ABC TV comments “ASX has good support at these levels, I don’t believe it will go any lower”.
He might be right Freddy if the support is perpetually negative RAT interest rates.
I should have said…’he might be right by accident’
What happened to the new daily wrap?
Sorry the new daily asx wrap…
Returns Monday.
Wow, rising, rising…rising!
The moon is in sight!
No…gah…screw the moon! Have some ambition!
All global stocks to Mars, I say! Haw, haw!
(and they probably will)