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Anissa Cavallo |
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Managing Director |
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Dear Ellen,
Sex sells! Particularly in a crisis
Sex, drugs & rock & roll! Is this powerful trinity the answer to the current investment opportunity? Well…maybe! In this anniversary edition of Bout Up (you know that stands for Boutique Update, right?) we explore the thinking around “grunge” investments and are they the plat du jour during tough financial times.
Alan Kohler gives us his thoughts on how the world’s political leaders are seeing the financial crisis and recession;
Tom Elliott explores “what investment lessons could be learnt” by drawing parallels between the 1930’s Great Depression and today;
JM Financial Group introduce us to the “Armageddon” Pricing Model, a tool which can be used when assessing the value of a company’s share price.
And, I interview investment specialists who have their own views about where the money should go.
So enjoy reading this jam packed edition of Bout Up and please feel free to email us (admin@bdmdirect.com) with any comments or questions you may have. |
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Alan Kohler |
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Eureka Report |
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| NATION BUILDING, NOT HAND-OUTS |
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The government should announce a new stimulus package of at least $30 billion, preferably $40-50 billion, and the money should not be wasted on tax cuts and cash hand-outs as the last $10 billion was.
This should be seen as an opportunity to quickly rebuild the national infrastructure, not to get a kick in the polls with tax cuts. Water, broadband, ports, railways, sustainable energy: there’s no end of things to do, and everyone has already agreed long ago that the task is urgent.
READ MORE |
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| RECESSION PROOF BUSINESSES |
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As recessionary conditions envelop the economies of the US, UK and probably most of Western Europe, Australian investors should turn their minds towards those businesses which will survive and perhaps even prosper during difficult times. Just over 21 years ago, in the immediate aftermath of the ’87 sharemarket crash, I was given the task of researching the Great Depression of the 1930s to see if any investment lessons could be learnt. Here’s what I discovered then, which I believe to be relevant again now:
READ MORE |
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Mark Davies |
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Private Portfolio Manager - JM Financial Group |
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| THE “ARMAGEDDON” PRICING MODEL - Peak to Trough EPS analysis |
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The half year reporting season started last week, and while we have already seen a number of premature downgrades from companies before their reporting date, the next month promises to be full of surprises. Companies that miss current earnings forecasts by the market will watch their shares price beaten down to levels that might just start to look interesting if you are a medium to long term investor. With the current market volatility how do you know what is starting to look like value and what isn’t?
READ MORE
THE “ARMAGEDDON” PRICING MODEL |
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| TAKING OFF AGAINST THE WIND - Anissa Cavallo |
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“When everything seems to be going against you, remember that the airplane takes off against the wind, not with it.”
Thousands of great authorities throughout history agree that in adversity you will find the greatest opportunities. So, does the financial crisis present us with an opportunity to rise against the wind?
Virtually all assets are selling below their previous valuations and many commentators continue to argue the merits of their fundamentals. But surely these so called “opportunities” go beyond the potential for an upside correction? Over the past 100 years we have experienced many recessions, depressions and financial market failures. During these times there have always been some investments that have weathered the storm. In fact in some cases the economic plight was their catalyst for success.
READ MORE |
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