Archives for September 2020

Do Low Rates of Interest Really Support Markets? On 10 September, I concluded that they don’t. This article explores one of this result’s major implications: investors can’t depend upon central banks. This is because their “stimulus” has produced artificially-low rates that are increasingly – and dangerously – divorced from reality. It’s possible, as the saying goes, that … [Read more...] about Central banks don’t dispense “Stimulus” – they peddle poison

Do today’s minuscule rates of interest justify stock markets’ sky-high valuations? Bulls often imply – and sometimes boldly assert – that they do, and mainstream theory is on their side. The problem is that theory is elegant and tidy, whereas reality is clumsy and messy: many factors, many of them fleeting and some of which counteract others, are at play. In Australia and the … [Read more...] about Do low rates of interest really support markets?

Are Australian stocks overvalued, fairly valued or undervalued? Leithner & Company, a value investor based in Brisbane, regularly analyses data that shed light upon this vital – and perennial – question. This article outlines some of the argument and analysis that supports my conclusion that the All Ordinaries Index is presently overvalued by at least one-third and perhaps … [Read more...] about Why This Market Is 33-50% Overvalued