Archives for February 2025

Many claims about RRE’s returns combine anecdote, distortion, error and omission. I substitute orthodox theory and long series of data. Most comparisons of the returns – or assertions about the relative returns – of Australian stocks and residential real estate (“RRE,” which is often described by the ambiguous shorthand “property”) suffer from one or more of three severe … [Read more...] about Don’t be misled: Aussie stocks and bonds outperform residential real estate

Its impact upon stocks – and of stocks upon it – has long been scant. Investors should ignore it and those who try to predict its actions. It’s infrequently stated openly, but analysts, journalists and investors apparently accept it as conventional wisdom: the consequences of changes to central banks’ policy rates of interest are consistent and significant. After the Reserve … [Read more...] about Stop obsessing about the RBA

“Revolutionary technology” doesn’t boost productivity, profits or returns. Speculators in AI and crypto are the latest to delude themselves. DeepSeek Isn’t AI Speculators’ Biggest Worry “DeepSeek has sparked a deep freakout,” reported The Wall Street Journal (“Nvidia Stock Sinks in AI Rout Sparked by China's DeepSeek,” 27 January). “The Chinese artificial-intelligence … [Read more...] about Never mind DeepSeek: here’s why the AI mania won’t last