Markets Live: ASX shows suprise strength

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October 3, 2013 – 11:45AM

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The Australian market closed higher despite worries about the US fiscal crisis, with miners leading the rise, while Leighton shares are sold off heavily.

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5:12pm: That’s all from us here at Markets Live for today. Thanks for being with us, we’ll see you bright and early tomorrow morning.




Just one quick note before you leave: Next Monday, October 8, the Markets Live blog will not be running.




Click here for a full wrap of the day’s session




4:37pm:The construction company that worked on the $103 million refurbishment of department store David Jones store in Melbourne has collapsed with the expected loss of 309 jobs.




After 20 years and more than $2 billion worth of projects in four states, the Walton Construction company has been placed in administration.




Founder and managing director of Walton, Craig Walton said it was the toughest day of his life.




‘‘It is also the saddest day because of the impact on our employees and their families who have been so loyal and outstandingly professional over the whole journey. ”






4:28pm: Here are the biggest winners and losers from the ASX200 today:









4:14pm: The market has closed higher, with the benchmark SP/ASX200 adding 19.3 points, or 0.4 per cent, to 5234.9. The broader All Ords gained 17.1 points, or 0.3 per cent, to 5232.









4:08pm:Former Telstra boss Ziggy Switkowski has been appointed chairman of the new NBN Co board.




Dr Switkowski, the nuclear physicist who was dumped as Telstra’s chief executive in 2004, will lead a three-person board overseeing Australia’s largest infrastructure project.




The new NBN Co board was recommended by Communications Minister Malcolm Turnbull and confirmed in the Coalition cabinet meeting on Thursday.




Dr Switkowski, who replaces outgoing chairwoman Siobhan McKenna, will be joined by current NBN Co board members Kerry Schott and Alison Lansley.




Read more









3:54pm: With local trade just about to close, here’s how the rest of the region is going:



• Nikkei: flat


• Shanghai: +0.7%


• Taiwan: +1.7%


• South Korea: flat


• Singapore: -0.2%


• New Zealand: flat








3:40pm: Turkey has been trying for years to join the European Union, presenting itself as a growing economic and political power and a bridge to Asian and Middle Eastern markets.




But the next country to join the EU’s existing 28 members is more likely to be one of six small Balkan countries, five of which still formed part of Yugoslavia when Turkey made its first membership bid.




Several powerful EU states are reluctant to open the door to a large, mainly Muslim country, even a member of the NATO Western military alliance, fearing a troublesome integration whereas small countries have a track record of smooth accession.




While the EU focuses its attention elsewhere, the Turkish government and public are increasingly despondent and have started to wonder whether it really needs Europe after all.




“I guess that nobody wants to say that we are not going to continue with the accession process, neither the EU nor Turkey,” said Turkey’s ambassador to the EU, Selim Yenel, speaking at a Brussels think-tank in September.




“But there will be one day in which we will have to decide on what to do about it, because this is going nowhere.”









3:26pm:BHP Billiton said demand for commodities will remain robust as China, its biggest customer, transitions to a consumption-led economy even as its growth moderates.




‘‘Commodity demand growth will remain robust as the fundamentals of wealth creation, demographics and urbanization continue to drive demand for resources,’’ Mike Henry, president of the Melbourne-based company’s marketing and technology unit, said.




‘‘However the shifting dynamics of economic growth will challenge Australia’s traditional understanding of core commodities.’’




Henry said commodities associated with food production, energy and consumer goods ‘‘will see more durable demand growth’’ from China.









3:13pm: Executing a 180-degree turn is a tricky manoeuvre for a naval fleet as big as the one sailing into Sydney Harbour this weekend, writes BusinessDay‘s Michael Pascoe.




While there’s less danger to life, limb and rigging, it’s also difficult for a coalition that’s spent the past four years fighting a phoney war about government debt.




But there are more signs that Joe Hockey is signalling that just such a turn is in the offing. The big bloke is about to attempt a backflip with half twist – everybody stand back.




The latest instalment comes from the AFR’s Laura Tingle who reports that Hockey “is considering identifying government borrowings raised to fund infrastructure as separate from debt raised to cover the budget deficit as the Abbott government contemplates an infrastructure spending splurge”. Suddenly I’m running into senior Liberal types wanting to explain what a good idea infrastructure bonds would be, and not just John Hewson expanding on his July National Press Club speech.




The semantics are wonderful: the Labor Party generated evil government debt that will enslave your children; the Liberal Party will access capital markets to set your children free.




And that is a good thing, however galling the about-face might be for those who suffered the fiscal ranting of Hockey as shadow treasurer.




Read more









2:59pm:The Federal Court has blocked Japanese brewing giant Asahi’s access to privileged documents relating to its purchase of Independent Liquor from two private equity partners.




The ruling means it won’t be able to trawl through thousands of confidential financial documents relation to the deal.




Asahi launched legal action earlier this year claiming the private equity duo lied about the earnings of the Independent Liquor business it bought off them in 2011 for $1.2 billion.




Asahi was seeking damages over its claims that PEP and Unitas gave them false earnings information during the sale process, which led Asahi to overvalue and overpay for Independent Liquor.




It is believed the difference between Independent Liquor’s alleged inflated earnings and actual earnings could be as much as $500 million.









2:38pm: Uranium miner Paladin Energy says three workers have been injured at its Langer Heinrich Mine in Namibia.




Two of them have significant burns after the serious electrical incident and all three had been hospitalised, the company said today.




The Perth-based company, which operates two uranium mines in Africa, said one employee and two contractors were hurt in the incident which occurred at 3.30pm Wednesday, Namibian time.




‘‘Two of the workers received significant burns while the third worker received smoke inhalation and has been discharged,’’ Paladin said in a statement.




The more seriously injured worker has been flown to South Africa for treatment and a full investigation is underway.




The company said relevant authorities had been notified.




The accident comes two months after a worker was killed in the tyre fitting workshop at the company’s Kayelekera mine in Malawi.









2:25pm:Commonwealth Bank shareholders will be asked to approve a bonus of up to $4.3 million to chief executive Ian Narev at the bank’s annual general meeting later this year.




The payment would be made under the bank’s long-term incentive program, and its size would depend on how the bank performed compared with Australia’s 20 largest listed companies, and its customer satisfaction ratings.




The country’s biggest bank disclosed the grant of up to 62,966 award rights in its letter to shareholders ahead of the AGM next month.









2:12pm:Record low interest rates are encouraging more people to take out a mortgage but other parts of the economy aren’t being stimulated, new figures show.




St George economist Janu Chan said the Reserve Bank of Australia could cut the cash rate again in November in order to stimulate the economy in a time of continued consumer caution.




‘‘November could be a close call,’’ she said.




‘‘While housing seems to be the area which has had the biggest impact from lower rates, other areas of the economy haven’t really.’’




The proportion of households with a mortgage rose by 2.2 per cent to 38.8 per cent in the three months to September, the latest St George and Melbourne Institute Household Financial Conditions report shows.




That rise came as the official cash rate was cut by a quarter of a percentage point in August to a record low of 2.5 per cent, a move passed on by most lenders.




But the proportion of households with credit card debt fell by 7.3 per cent to 31.5 per cent during the September quarter, and those with no debt rose by 0.9 per cent to 42.9 per cent.




That indicates many households are paying off debt instead of spending, and that could be down to concerns about rising unemployment, Ms Chan said.









2:02pm:Former Gunns chairman John Gay could be pursued for the profits of his insider trading of the failed timber company’s shares.




The Australian Federal Police has received a referral and is considering whether an investigation is warranted.




Gay was fined $50,000 in August for trading around $3 million worth of Gunns shares with inside information not available to the market.




In court hearings, the prosecution estimated his windfall at more than $800,000, a figure Gay’s lawyers challenged.




‘‘The AFP can confirm it received a referral in relation to this matter on August 28, 2013,’’ an AFP spokesperson said.




‘‘As this referral is currently under evaluation, it is not appropriate to comment further.’’




The Australian Shareholders’ Association slammed the fine as too lenient when Justice David Porter handed it down in the Tasmanian Supreme Court.









1:49pm:Westpac has submitted a bid for Australian assets being sold by Lloyds Banking, two sources said, lining up against competing offers from Pepper Australia and Macquarie.




Lloyds is selling its corporate loan, motor and equipment financing businesses in Australia with a face value of some $8.5 billion, people familiar with the process told Reuters.




The sale is part of a global plan by Lloyds to cut costs and strengthen its balance sheet as the bank shrinks its international operations and refocuses on lending to British households and businesses.




Westpac declined to comment.









1:32pm:Morningstar analyst Ross MacMillan weighs in on Leighton:





“It’s not something that Leighton would welcome,” he said about the allegations.





“We are certainly reassured by the processes that Hamish Tyrwhitt has introduced, and also the fact that a number of these allegations have been investigated by the company. … But we’d like to see Leighton address any issues that were raised in the newspaper articles as soon as possible and potentially clear up any allegations that are there.”




Shares are trading at $17.72, a fall of $1.86, or 9.5 per cent.










1:26pm:Companies should release their profit results well before the share market opens, according to a survey by the Australasian Investor Relations Association (AIRA).




Most survey respondents said they preferred to study earnings reports early in the day so they can be better prepared before trading starts, and ahead of company briefings, says the AIRA.




“We hope that this feedback encourages more listed entities to act,” AIRA chief executive Ian Matheson says.




The AIRA noted that many companies still held board meetings to sign off profits results immediately before release.




The survey also showed that it didn’t really matter how results presentations were delivered – via webcast, conference call or face-to-face – so long as the investment community could question the chief executive officer and the chief financial officer.




But, analysts and fund managers found webcasts and conference calls less time-consuming because they didn’t have to travel to attend a briefing.









1:20pm:The Australian dollar remains higher as the US dollar continues to weaken with no end in sight to the US government shutdown.




The local unit is trading close to the session’s high of 94.05 US cents.




Large parts of the US government have been closed for two days after Congress failed to pass budget legislation by the end of the American financial year. US President Barack Obama and congressional leaders have held their first meeting since the shutdown began, but there are no signs of progress.




Westpac NZ senior market strategist Imre Speizer said the market had become pessimistic about the likelihood of a quick budget resolution.




“The shutdown is weighing on the US dollar, there is also concern about the US debt ceiling that will be hit in the middle of October,” he said. “(Also) there were some weak payrolls data in the states overnight that weighed on the US dollar.”









1:00pm:The resources boom is not over and the sector is entering a new export growth phase that will deliver Australia “serious money”, Industry Minister Ian Macfarlane says.




While there had been a slowdown in construction projects, the production of coal, iron ore, gas, liquefied natural gas (LNG)and base metals was ramping up.




The Bureau of Resources and Energy Economics (BREE) forecasts export earnings for mineral and energy commodities to increase by more than 60 per cent over the next five years to around $290 billion a year. The value of those exports in 2012 was $177 billion.




“That is serious money,” Macfarlane told the 2013 Annual National Conference on Resources and Energy in Canberra today.




Much of the new growth will come from the LNG sector, with exports expected to increase by 360 per cent to around $65 billion.




The federal coalition government wants Australia to be an “energy super power” and will be working on a white paper toward this end over the next 12 months.









12:50pm:Seven West Media has promoted the head of its magazines division to chief operating officer as it looks to increase its revenue from new technologies and content.




Pacific Magazines chief executive Nick Chan will replace outgoing chief operating officer Rohan Lund, who announced his departure a fortnight ago. Seven West has also promoted its chief sales and digital officer, Kurt Burnette, to chief revenue officer.




The appointments are part of a restructure aimed at helping the owner of Seven Television, Pacific Magazines, Yahoo!7 and the West Australian newspaper deliver more content and boost revenue, chief executive Tim Worner said.




“We are placing innovation at the core of our business and bringing each of our businesses even closer together to deliver new revenue streams,” he said in a statement.









12:41pm: After years of pain, the initial public offerings (IPO) market is on the brink of an extraordinary recovery, the AFR’s Tony Featherstone notes.




At least eight larger floats are expected this year and more will follow if the global sharemarket rally holds. Several mooted multibillion-dollar offers in 2014 would create IPO records.




More than $6 billion could be raised in the fourth quarter from IPOs – there’s New Zealand electricity company Meridian Energy, Nine Entertainment Co, OzForex, Fife Capital Industrial REIT, APN Property Group, Dick Smith Investments, education group Vocation, Redcape Hotel Group and credit-reporting company Veda.




Other floats are likely to be announced within weeks. The fourth quarter is typically the busiest for IPOs as companies race to list before Christmas. With larger floats taking at least three months to complete, vendors must launch larger IPOs for this year by October.




“This is the best IPO market in five or six years in terms of sustained interest from buy-side investors and vendors more pragmatic about price,” says Hugh Falcon, co-head of Macquarie Equity Capital Markets in Australia and New Zealand.




Here’s a handy list of confirmed and potential IPOs this quarter.









12:29pm: Here’s a nice little lunchtime read on why Rio Tinto is phasing out its train drivers and replacing them with robots:




Train drivers employed by Rio Tinto to haul iron ore across Australia’s outback make about the same money as surgeons in the US. It’s little wonder the mining company will replace them with robot locomotives.




The 400-plus workers in the remote Pilbara region who earn about $240,000 a year probably are the highest-paid train drivers in the world, according to UK-based transport historian Christian Wolmar. Australia’s decade-long mining boom has sucked up skilled workers, raising wages for engineers to drivers at Rio, the second-largest exporter of the mineral, and its closest competitors, Vale and BHP Billiton.




The three companies that control about 59 per cent of the $155 billion global iron ore trade are automating to bolster margins and squeeze out extra capacity as they boost supply to a record to feed steel mills in China, the biggest buyer. The push by Rio, which aims to move about 290 million metric tonnes on its rail network by next year, is expected to be the biggest driver for cost cuts in its iron ore unit after currency swings.




Read more










12:19pm: Sales of new vehicles dipped in September compared to the same month last year, as weakness in the passenger and commercial sectors overshadowed resilient demand for sports utilities.




The Australian Federal Chamber of Automotive Industries VFACTS report said total vehicle sales in September were 92,662, down 2.1 per cent on last year’s 94,627. Sales were off 0.8 per cent compared to August, though adjusting for seasonal factors gave an increase of 0.7 per cent, VFACTS said.




Sales for the first nine months of 2013 were running 3.3 per cent ahead of the same period last year, while annualised sales were steady at 1.136 million.




Demand for sports utility vehicles remained solid with sales 3.8 per cent higher than in September last year. Sales of passenger cars dropped 3.9 per cent and the light commercial market suffered another tough month with sales down 6 per cent.









12:04pm: Long-serving Origin Energy chairman Kevin McCann is retiring from the electricity retailer, and will be replaced by fellow board member and Westpac director Gordon Cairns.




McCann has been chairman of Origin Energy since it listed on the share market in 2000, overseeing strong growth in its market value. He will step down at the company’s annual general meeting on October 23.




Cairns, a director at Origin for six years, will become chairman if he is re-elected to the board by shareholders at the meeting.









11:50am:Australian shares are doing a good job of shrugging off lingering global fears of a US debt default as the stand-off in Washington continues.




Mining stocks are underpinning the market after copper rose off a one week low. BHP has climbed 1.1 per cent while rival Rio Tinto is up 1 per cent. Gold producers Newcrest Mining and Evolution Mining have jumped 2.5 per cent and 3 per cent respectively after bullion rose more than 2 per cent.




“It’s a fairly broad-based strength actually, the banks and resources are doing okay,” says Damien Boey, equity strategist at Credit Suisse. “That seems to be the thematics, but it’s not a huge move either way.”




Stocks with high dividend yields have also gained, including the Big Four banks, which yield on average 5.4 per cent each. National Australia Bank has rallied 1.3 per cent while Westpac is up 0.8 per cent.




So far investors have been wagering that a deal in Washington will be reached in time to avoid lasting damage to the economy, although another fight over the debt ceiling still looms.




“This week has seen a muted Australian market as investors sit back and watch the US debt funding/debt ceiling negotiations unfolding,” says Chay Flack, equities dealer at CMC Markets Stockbroking. “There isn’t any panic yet, but if no agreement is reached beefore the October 17 deadline, we may find ourselves in the calm before the storm.”









11:35am: The price of the bitcoin digital currency has dropped, after US law enforcement authorities shut down Silk Road, the online marketplace used to buy and sell illegal drugs.




The bitcoin, valued by many for its anonymity, fell to $US129 from over $US140 a day before, according to a website for trading bitcoins, Mt.Gox. Earlier, the currency traded as low as $US110.




US federal authorities have charged Ross Ulbrich with running Silk Road, after arresting him at a library in San Francisco. Court papers filed in the case in New York accuse him of engaging in a “massive money-laundering” operation and of trying to arrange a murder-for-hire. Ulbricht is to appear in federal court in San Francisco.




In interviews with news reporters in the past, Ulbricht has gone by the moniker Dread Pirate Roberts, the authorities said, and until now his identity has remained a mystery.




To us it’s also a bit of a mystery just how Silk Road managed to keep operating for so long, not to mention the offshoots that are popping up across the web…







Bitcoins. Photo: Getty Images









11:15am:Former Leighton Holdings’ chief executive Wal King has denied claims he was aware of bribery and fraud allegations made against the building giant.




King’s comments come as Leighton says it’s “deeply concerned” about bribery and fraud allegations made against the firm, but denies it has a culture of corruption and cover-ups.




A Fairfax Media investigation published today said hundreds of confidential company documents revealed that top executives, including the highly respected Mr King, knew about the corruption claims.




The allegations include the payments of kickbacks in Iraq, Indonesia, Malaysia and other countries, as well as other serious corporate misconduct.




King said today he had no prior knowledge of any wrongdoing at the company and that he had not been contacted my the police.




Leighton shares are down 9 per cent at $17.81.









11:07am:The Australian share market’s apparent shrug of the shoulders to political uncertainty in the US has continued with gains in the early part of this morning’s session, CMC trader Niall King notes:



• For the moment at least, local investors appear keen to show their hand despite the prevailing debt ceiling shenanigans in the US. The Materials sector has been the main beneficiary of this bravado so far, with BHP and RIO both notching gains of almost 1%.


• While the vast majority of observers expect a resolution to the US fiscal problems and avoid the unthinkable default, jitters are bound to surface the longer the wrangling persists.


• Looking past this, markets may use any government deal as a bullish launch pad and are likely to be positioning themselves accordingly in the meantime.








11:00am: Industry Super Network, the lobbying group for the not-for-profit superannuation sector, is changing its name. The high-powered organisation will now be known as Industry Super Australia.




Members of its board include former NSW Treasurer Peter Collins, former Victorian Premier John Brumby, and one of the “fathers” of superannuation, Garry Weaven.




Industry funds hold about 20 per cent of Australia’s $1.6 trillion superannution pie.









10:51am: Shares in accounting software start-up Xero have surged back towards all-time highs in early trading after it boasted it now has more clients in Australia than in its home turf, New Zealand, as it ramps up its global push.




In the September half, revenues surged to $NZ30 million from $NZ16.9 million a year earlier, while at the end of the half, revenue was running at an annualised $NZ70 million.




Perhaps more importantly, the cashburn has slowed, dropping to just $NZ3.8 million in the September quarter. Its end-quarter cash reserves stood at $NZ65 million down from $NZ68.8 million three months earlier. In the June quarter the cashburn was $NZ9 million.




In early trading, the shares were ahead 40 cents at $16.90 in light volumes.









10:42am: Tokyo stocks have opened lower as talks between President Barack Obama and top Republican leaders failed to end a US government shutdown.




The Nikkei 225 index, which fell 2.2 per cent yesterday – its worst percentage drop since mid-August – lost another 0.2 per cent in early trade to 14,140.11.




‘‘The increasing tension over the US government stand-off, as well as more US dollar weakness is going to inhibit aggressive stock buying,’’ said SMBC Nikko Securities general manager of equities Hiroichi Nishi.









10:40am:All remaining controls over electricity and gas prices in NSW should be removed, the state government has been told, since uncontrolled contract prices are cheaper.




A report today by the Australian Energy Markets Commission, is the final step in the process for the O’Farrell government to remove all price controls in NSW.




Almost one in three households remain on electricity and gas contracts which are overseen by the government, not just for prices, but also for late fee surcharges and other penalties.




‘‘Around 60 per cent of small NSW electricity consumers and 70 per cent of small natural gas consumers have chosen a competitive offer, and 21 per cent of electricity consumers and 14 per cent of natural gas consumers switched their retailer in 2012 in pursuit of a better deal,’’ the Commission’s chairman, John Pierce said. ‘‘In these competitive retail markets, the regulated price is not the best price.’’









10:29am: Leighton stock is getting hammered in early trade, as investors worry about the fall-out from our exclusive investigation, which reveals a “culture of rewarding corruption or incompetence, and abysmal corporate governance” at the construction company.




Leighton’s shares are down 9 per cent at $17.83.









10:25am:US President Barack Obama has sent Wall Street a blunt warning that it should be very worried about a political crisis that has shut down the government and could trigger a US debt default.




Obama said he was “exasperated” by the budget impasse in Congress, in an interview with CNBC apparently designed to pressure Republicans by targeting the financial community moments after markets closed.




Obama was also set to meet Republican and Democratic leaders for their first meeting since the government’s money ran out and it slumped into a shutdown now well into its second day.




Asked whether Washington was simply gripped by just the latest in a series of political and fiscal crises which get solved at the last minute, Obama warned that investors should be worried.




“This time’s different. I think they should be concerned,” Obama said, in comments which may roil global markets.




Read more







“Absolutely I am exasperated, because this is entirely unnecessary”: US President Barack Obama. Photo: AP









10:13am: The stock market has opened marginally higher, with gains in the miners offset by losses in industrials and retailers. The benchmark SP/ASX200 index is up 4.3 points, or 0.1 per cent, at 5219.9, while the broader All Ords has inched up 2.4 points, or 0.05 per cent, to 5217.3.









9:55am: And here’s the company’s response: Leighton has released a lengthy statement in response to our investigation, saying it is “deeply concerned” about bribery and fraud allegations made against the building giant, but denies it has a culture of corruption and cover-ups.




The construction firm stressed that it was continuing to work with the AFP over the investigation, and was “not aware of any new allegations or instances of breach of our ethics”.




Leighton added that fraud allegations in relation to a barge construction in Indonesia were internally investigated and resulted in the company taking a former employee to the NSW Supreme Court to recover $5.6 million. Leighton added that the case was still before the court




Leighton said its board acted in the best interests of its companies and its board members were “aware of their responsibilities and have at all times executed their duties with the appropriate care and diligence”.




The contractor said that since it discovered a possible breach to its code of ethics in 2011, it initiated an internal review which led to the sacking of a senior executive the following year, an overhaul of its management structure and improved corporate governance and risk management processes.




Read more









9:46am: Locally, there’s likely to be some focus on this cracking exclusive by our investigations unit on a corruption scandal at Leighton:




Corruption and cover-ups in Leighton Holdings’ international construction empire were rife and known to top company executives and directors, according to internal company files.




Those in the know included the Australian construction giant’s chief executive at the time, Wal King, and his short-term successor David Stewart.




In revelations that will cause international embarrassment for Australia and raise questions about the role of the nation’s corporate watchdog, the files expose plans to pay alleged multimillion-dollar kickbacks in Iraq, Indonesia, Malaysia and elsewhere, along with other serious corporate misconduct.




Hundreds of confidential company documents, obtained during a six-month Fairfax Media investigation, also reveal a culture of rewarding corruption or incompetence, and abysmal corporate governance in what looms as the worst recent case of corporate corruption involving a major Australian firm.




Mr King, one of Australia’s most highly regarded chief executives and who has reportedly been approached by Communications Minister Malcolm Turnbull about taking an NBN Co board seat, was chief executive of Leighton Holdings for 23 years and is a prominent Sydney business community figure.




Read more




Overnight, shares in German construction giant Hochtief, which owns 56 per cent of Leighton, slumped 7.9 per cent after investors saw the report on our websites.








Click to play video









More video




Recommended



• 
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  Bribery scandal engulfs Leighton Holdings

  
  


• 
  Click to play video
  

  Mal Maiden: Markets react to US shutdown

  
  


• 
  Click to play video
  

  ‘Shutdown did not have to happen’

  
  


• 
  Click to play video
  

  What’s wrong with October?

  
  


• 
  Click to play video
  

  We will not negotiate ‘at the point of a gun’

  
  





Replay video











9:38am:Trading in the ASX has been mysterious to say the least. It has managed to buck global leads and has finished in the green twice in the last five trading days when expectations were for it to fall, IG’s Evan Lucas notes:



• However, volumes at the moment are well below the 30-day average with trade yesterday on registering $3.2 billion in turnover. The fact China is on holidays for golden week, plus it is school holidays in Australia, means that investors are tending to sit on the sidelines and are waiting for volumes to return. The price action at the moment is weak because of this and may not be a complete reflection of where the ASX will head in the next month.


• There is certainly a feeling that the longer the macro issues drag out the stronger the red on screen will become. However, the defensive trade on the ASX does look strong as yield investors add support to the banks, the supermarket chains and Telstra as rates remain at record lows and yield becomes a positive trade again.


• What is also clear on rates is economists are now moving away from their November rate calls. The statement on Tuesday really did sound like the RBA has put the easing cue back in the rack for at least the rest of the year. We feel that it may stay there permanently, media hype around property bubbles and clearance rates are creating fears.


• The fact that Sydney is on a price tear will almost singlehandedly keep the RBA out of the market despite the rest of the country moving at a slower pace.


• What is highly possible now is a rate hike. If property takes off, particularly secondary market homes, the RBA may have to slow lending to property despite the fact that retail spending is still low to historic levels and the non-mining sector is still struggling to keep up.








9:32am: Cloud-based accounting firm Xero says first-half sales have almost doubled as it continues to chase customer growth ahead of profits.




Operating revenue exceeded $NZ30.3 million ($26.96 million) in the six months ended September 30, from $NZ16.5 million a year earlier, the Wellington-based company said.




The figures exclude its Xero Personal product, which is being withdrawn in November next year. It contributed $NZ600,000 of sales last year. Total paying customers rose to 211,300, up 89 per cent from September last year.




Xero shares have been rallying this year, more than doubling in price.









9:13am: US stocks ended lower as political wrangling in Washington raised investor concerns that the stoppage could be prolonged.




The Dow Jones Industrial Average fell 58.56 points, or 0.4 per cent, at 15,133.14. The Standard Poor’s 500 Index was down 1.13 points, or 0.1 per cent, at 1,693.87. The Nasdaq Composite Index was down 2.96 points, or 0.1 per cent, at 3815.02.




‘‘Hearing some of the rhetoric floating around, it has been pretty clear that both sides were pretty entrenched in their stances and that something was not going to get done within a day or two’’, said Michael James, managing director of equity trading at Wedbush Securities.




James said it is still more likely Congress and the White House will agree to raise the debt ceiling later in October.




But ‘‘with things as acrimonious as they are in Washington right now, nothing would surprise me’’, he added. ‘‘There is going to be a lot of uncertainty and uncertainty usually breeds selling.’’




Read more










9:02am: The Australian market looks set to open higher despite falls on Wall Street as the reality of the US government shutdown depressed markets along with fears of a American debt default.




What you need to know this morning:



• SPI futures are up 14 points at 5226


• The dollar is trading at 93.90 US cent


• The Dow fell 0.4%, the SP500 slipped 0.1%


• London’s FTSE lost 0.35%, Frankfurt’s DAX shed 0.7%


• Chinese markets are closed for a public holiday


• WTI crude jumped $US2.06 to $US104.10 a barrel 


• Gold futures soared 2.7% to $US1320.70 an ounce


• Iron ore is unchanged at $US131.40 a tonne



Read more on how global markets performed overnight in this morning’s need2know.




9:00am: Good morning. Welcome to the Markets Live blog for Thursday.




Contributors: Jens Meyer, Luke Higgs, Max Mason




This blog is not intended as investment advice




BusinessDay with agencies














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Featured comment:



• 
  

  
  

  It will be interesting to watch the share price of LEI in the immediate future. I would be feeling a bit nervous if I was a current holder

  
  

  
  

  Commenter
  ajay
  
  Location

  
  

  Date and time
  
  October 03, 2013, 10:17AM

  
  




• 
  

  
  

  LEI could go under if these claims are proved. Get out while you can.

  
  

  
  

  Commenter
  Allan
  
  Location
  
  Prahran
  
  Date and time
  
  October 03, 2013, 4:27PM

  
  


• 
  

  
  

  4:08pm: Former Telstra boss Ziggy Switkowski has been appointed chairman of the new NBN Co board…. I enjoyed Ziggy’s spin re nuclear power. Malcolm probably chose him for this quality of being a spin meister. As for Malcolm. I use to think that Malcolm could have won the Libs an extra 10 seats. Now I think he may have lost the election if he was leader. More and more I see him as a relic from the dial up era. Australia is in no danger of joining the high tech world. Onya Mal.

  
  

  
  

  Commenter
  Bearly Gruntled
  
  Location
  
  Land of hot air
  
  Date and time
  
  October 03, 2013, 4:25PM

  
  


• 
  

  
  

  House next door up for sale, slightly smaller than mine and no pool, price range $4.2-4.5M

  
  

  Who wants to live next door to al pal?

  
  

  T-shirt thrown in for free.

  
  

  ROFLMAO!

  
  

  
  

  Commenter
  Allan
  
  Location
  
  Prahran
  
  Date and time
  
  October 03, 2013, 4:24PM

  
  


• 
  

  
  

  allan…all ok?
  he he

  
  

  
  

  Commenter
  egg on face
  
  Location

  
  

  Date and time
  
  October 03, 2013, 4:24PM

  
  


• 
  

  
  

  Bought more Wotif.com Holdings Limited (WTF) at $4.60 today.

  
  

  
  

  Commenter
  Gordon Akman
  
  Location
  
  Broadbeach
  
  Date and time
  
  October 03, 2013, 4:15PM

  
  


• 
  

  
  

  please keep the gifts coming al..we need a laugh.
  would you like fries with that?
  he he

  
  

  
  

  Commenter
  Charlie Aitken
  
  Location
  
  @winning
  
  Date and time
  
  October 03, 2013, 4:15PM

  
  


• 
  

  
  

  Well, look like all Ords is running out puff now as I predicted this morning.
  I will start buying a bit when all Ords hits 5150.

  
  

  
  

  Commenter
  Wil
  
  Location
  
  Melb
  
  Date and time
  
  October 03, 2013, 3:52PM

  
  


• 
  

  
  

  5250 is about half way between 6800 and 3100, plus a bit. After 5 years, sounds about right to me…

  
  

  
  

  Commenter
  player1
  
  Location

  
  

  Date and time
  
  October 03, 2013, 3:49PM

  
  


• 
  

  
  

  XAO now up from about 4300 to about 5300 over the past 12 months. Any ‘shorters’ claiming to have made money over that time must be psychic

  
  

  
  

  Commenter
  player1
  
  Location

  
  

  Date and time
  
  October 03, 2013, 3:45PM

  
  
  • 
    

    
    

    He he.. yeah, ANZ, WBC, ARI, PMV, FLT, DJS all in the money. This shorting game is too easy!

    
    

    SBM, FXJ longs up… nice.

    
    

    Just want to thank my fan club. Cheerio!

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 4:21PM
    

  
  
  • 
    

    
    

    Sure, sure, have a look at the last lot of shorts I closed.

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 4:28PM
    

  
  


• 
  

  
  

  Regarding Mr. Narev’s bonus, according to the performance plan:

  
  

  “Exactly how much Mr Narev gets will depend on the bank’s performance compared with that of Australia’s 20 largest listed companies”

  
  

  Read more: http://www.smh.com.au/business/banking-and-finance/ian-narevs-bonus-in-the-hands-of-cba-shareholders-20131003-2uwb5.html

  
  

  So let me get this right, if commodity prices fall, and BHP and RIO perform poorly, his bonus goes up, correct ? It also requires the retail landscape to perform poorly.

  
  

  So Mr. Narev’s bonus increases if commodity prices go down ? And consumers stop spending at our local two biggest retailers ? Logical, eh ?

  
  

  
  

  Commenter
  Bud Fox
  
  Location

  
  

  Date and time
  
  October 03, 2013, 3:42PM

  
  


• 
  

  
  

  Hey I’ve got $500k to invest. What do? Buy a nothing house in a nothing suburb as an “investment” property and get rich off the $380 a week rent money (before expenses)?

  
  

  
  

  Commenter
  Young Gun
  
  Location
  
  of the financial world
  
  Date and time
  
  October 03, 2013, 3:34PM

  
  
  • 
    

    
    

    Settle Gordo. You are an excellent contributor to this site, with the exception of the housing rants

    
    

    
    

    Commenter
    igroki
    
    Location

    
    

    Date and time
    
    October 03, 2013, 4:07PM
    

  
  
  • 
    

    
    

    Why wouldn’t you spend the $500k in a decent suburb and get $600 pw rent??
    That’s what I did.

    
    

    
    

    Commenter
    Irish Phil
    
    Location

    
    

    Date and time
    
    October 03, 2013, 4:11PM
    

  
  


• 
  

  
  

  Is WHC a goner or what?

  
  

  
  

  Commenter
  Nathan
  
  Location

  
  

  Date and time
  
  October 03, 2013, 3:27PM

  
  


• 
  

  
  

  A confident trader once wrote that some stocks trade in easily identifiable ranges. Think about this and what it could mean for your financial future! You could be rich beyond your wildest dreams!! Actually sorry….didn’t mean to get you excited. It would seem that these ranges are only easily identifiable in hindsight…

  
  

  
  

  Commenter
  player1
  
  Location

  
  

  Date and time
  
  October 03, 2013, 3:26PM

  
  


• 
  

  
  

  3:13pm: Executing a 180-degree turn is a tricky manoeuvre ….. Thank you Joe. I owe Joe an apology for previously accusing him of planning to crash our economy. Mind you he was foretelling doom along with all of his acolytes. Oh wait. We haven’t had the Costello report yet.

  
  

  
  

  Commenter
  Bearly Gruntled
  
  Location
  
  Land of hot air
  
  Date and time
  
  October 03, 2013, 3:23PM

  
  


• 
  

  
  

  Some clown bought SBM on here yesterday. Been checking it out through the course of the day. Looks more like another basket case rather than a buy! Do you know something we don’t?

  
  

  
  

  Commenter
  Nalla
  
  Location

  
  

  Date and time
  
  October 03, 2013, 3:18PM

  
  
  • 
    

    
    

    Yep, up 4%. Buy low, sell high. Not difficult.

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 4:22PM
    

  
  


• 
  

  
  

  Is anyone here going to Delivering Alpha 2014? What investment ideas do you think will be discussed by the world’s most successful investors? Will discussions center on buying a nothing house in a nothing suburb for $500k and renting it out for a few hundred dollars a week?

  
  

  
  

  Commenter
  Hedge Fund
  
  Location
  
  Boss
  
  Date and time
  
  October 03, 2013, 3:14PM

  
  
  • 
    

    
    

    and I like to bore the pants off everyone writing the same nonsense time and time again over the day. The more I write it the truer it becomes.

    
    

    P.S. I heart Allan

    
    

    
    

    Commenter
    My name is
    
    Location
    
    Gordon
    
    Date and time
    
    October 03, 2013, 3:58PM
    

  
  


• 
  

  
  

  whos gut time for scool? im trolling my betters full time he he

  
  

  
  

  Commenter
  primary scool
  
  Location
  
  was wear i gut to
  
  Date and time
  
  October 03, 2013, 3:01PM

  
  


• 
  

  
  

  Liberator if you buy a property today in se qld you’ re probably going to get it at a discount..? Agreed..good onya.
  Now if you have a nice deposit saved repaying the balance is childs play.
  Who cares if the price goes up or down?
  Repaying the loan is the game not talking about it.
  If you looked at the daily drop of value in your car would you not own a car?

  
  

  
  

  Commenter
  James
  
  Location
  
  nsw
  
  Date and time
  
  October 03, 2013, 2:51PM

  
  
  • 
    

    
    

    @James. Paying a mortgage these days can be very tough for the first 10 years. It takes 2 people working full time to get on top of it. Meanwhile the value of the house usually doubles in 10 years. The current crop of new mortgagees seem to live on edge worrying about losing their jobs and bubbles popping. Most of them will get through in one piece. When you add up all the payments they make then what have they gained. It would probably take 20 years give or take before they are on a par with a renter.Of course once they have paid a place off it is rent free.

    
    

    
    

    Commenter
    Bearly Gruntled
    
    Location
    
    Land of hot air
    
    Date and time
    
    October 03, 2013, 3:13PM
    

  
  
  • 
    

    
    

    I do own a personal property in SEQLD that I do in fact reside in and for which is just about to be sold what is your point again?

    
    

    I refuse to own a car when work can supply me with one.. you just have to negotiate better when applying for the next job mate!

    
    

    I will buy in again maybe 3 years from now at a discount then of 15%. In that time I am not paying back interest and can move around freely! Take holidays when I want!

    
    

    
    

    Commenter
    Liberator
    
    Location
    
    SEQLD
    
    Date and time
    
    October 03, 2013, 3:35PM
    

  
  
  • 
    

    
    

    ‘Once they have paid a place off it is rent free’

    
    

    …and they own that asset outright.

    
    

    Its true, it is much cheaper to rent. But you may end up renting forever and you’ll have nothing to show for it if you don’t invest that money you are saving wisely. Possibly by shorting FMG…..

    
    

    Even you buys a place in a nothing suburb you will eventually own it.

    
    

    Of course the argument on here is not about owner-occupied, only investment property.

    
    

    
    

    Commenter
    heybert
    
    Location
    
    Sesame Street
    
    Date and time
    
    October 03, 2013, 4:02PM
    

  
  


• 
  

  
  

  Why should TA have trouble working with the SENATE. It was alleged that he offered Wilke a $500 million hospital for his area. Wilke felt that his electors were undeserving and rejected said offer and preferred to get shafted by JG re pokies. So too will TA do anything to get the votes from the new motley crew. Clive: large in frame, large in mouth and largesse may be looking good.

  
  

  
  

  Commenter
  Bearly Gruntled
  
  Location
  
  Land of hot air
  
  Date and time
  
  October 03, 2013, 2:48PM

  
  
  • 
    

    
    

    Wasn’t it a $billion hospital. Those with the attitude of “Divine right to rule” don’t negotiate with lesser mortals. That kind of attitude will get the Tory Rabbitt nowhere with the Senate. His is already starting to look like a “do nothing” gov’t.

    
    

    
    

    Commenter
    mitch of ACT
    
    Location

    
    

    Date and time
    
    October 03, 2013, 3:05PM
    

  
  


• 
  

  
  

  Pumped, now dumping, any comments now bullish market gurus?

  
  

  
  

  Commenter
  J.
  
  Location
  
  Syd.
  
  Date and time
  
  October 03, 2013, 2:44PM

  
  


• 
  
  • 
    

    
    

    The fat lady hasn’t started singing yet @J (just joking mate) You may well be right though!

    
    

    
    

    Commenter
    Mister5100
    
    Location

    
    

    Date and time
    
    October 03, 2013, 3:05PM
    

  
  
  • 
    

    
    

    might be just starting to warm the vocal cords now @ J….good call!

    
    

    
    

    Commenter
    Mister5100
    
    Location

    
    

    Date and time
    
    October 03, 2013, 3:25PM
    

  
  
  • 
    

    
    

    Just look at volume. Speculation trying to move it all north – not at its very best! Can only live on hype for so long.

    
    

    
    

    Commenter
    Liberator
    
    Location
    
    SEQLD
    
    Date and time
    
    October 03, 2013, 3:36PM
    

  
  
  • 
    

    
    

    5235 the daily close from abt a week ago. looks like thats where it’ll finish.

    
    

    
    

    Commenter
    J.
    
    Location
    
    Syd.
    
    Date and time
    
    October 03, 2013, 3:58PM
    

  
  
  • 
    

    
    

    @lib – stop the bs mate please.

    
    

    
    

    Commenter
    wiseman
    
    Location

    
    

    Date and time
    
    October 03, 2013, 4:19PM
    

  
  


• 
  

  
  

  LEI holders are in panic mode, great buying opportunity coming up!

  
  

  
  

  Commenter
  Looking for Value
  
  Location

  
  

  Date and time
  
  October 03, 2013, 2:41PM

  
  
  • 
    

    
    

    At the top of my watch list @L4V. P/E 12.44 but more importantly P/E Growth 0.84. Should be a good investment over the medium to longterm

    
    

    
    

    Commenter
    ajay
    
    Location

    
    

    Date and time
    
    October 03, 2013, 2:59PM
    

  
  


• 
  

  
  

  2:12pm

  
  

  For you 38.8 percent with a mortgage out there having bought since 2007, how many have had some stressful times with unforeseen circumstances like medical issues or losing your job and managed to just scrape through?

  
  

  Would you have preferred to have your deposit and extra savings in the bank for those occasions?

  
  

  
  

  Commenter
  Opinion Only
  
  Location
  
  Melbourne
  
  Date and time
  
  October 03, 2013, 2:32PM

  
  
  • 
    

    
    

    Yeah we probably all would’ve liked to have chosen another horse in the Melbourne Cup too.

    
    

    
    

    Commenter
    Unusual Suspect
    
    Location

    
    

    Date and time
    
    October 03, 2013, 3:05PM
    

  
  
  • 
    

    
    

    No.

    
    

    
    

    Commenter
    heybert
    
    Location
    
    Sesame Street
    
    Date and time
    
    October 03, 2013, 3:50PM
    

  
  


• 
  

  
  

  With unemployment rising and the participation rate falling and lower rates failing to stimulate business lending rents will continue to fall. Why? Because when people lose their jobs they move in with someone else and halve their rent. That’s why vacancies are rising and rents are falling. Littlelandlords’ worst nightmare.

  
  

  
  

  Commenter
  Allan
  
  Location
  
  Prahran
  
  Date and time
  
  October 03, 2013, 2:27PM

  
  


• 
  

  
  

  gift me allan.

  
  

  
  

  Commenter
  GA
  
  Location
  
  @sobbing
  
  Date and time
  
  October 03, 2013, 2:22PM

  
  


• 
  

  
  

  1% down for the week. Let’s see that’s 52% annualised. Gadzooks! Good week for the bears!

  
  

  
  

  Commenter
  Allan
  
  Location
  
  Prahran
  
  Date and time
  
  October 03, 2013, 2:17PM

  
  


• 
  

  
  

  earth to allan, are you there allan?

  
  

  
  

  Commenter
  major tom
  
  Location
  
  planet earth
  
  Date and time
  
  October 03, 2013, 2:07PM

  
  
  • 
    

    
    

    Yep alpha…. I have your meds. If you don’t behave we’ll get nurse ratchet to strap you down.

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 2:16PM
    

  
  


• 
  
  • 
    

    
    

    Allan, he’s just the same now as when he dropped out of grade 7 all those years ago lol

    
    

    
    

    Commenter
    Teacher
    
    Location
    
    Taylor’s Lakes Primary
    
    Date and time
    
    October 03, 2013, 4:12PM
    

  
  


• 
  

  
  

  “Australians have just lived through the warmest September since records began”

  
  

  Where’s fake Lord Monckton these days? last I heard he was hiding out in Jo Nova’s garden shed.

  
  

  Oh and for those that don’t know, Jo Nova is her stage name.

  
  

  
  

  Commenter
  Allan
  
  Location
  
  Prahran
  
  Date and time
  
  October 03, 2013, 2:03PM

  
  
  • 
    

    
    

    When did records begin? I’m sure it is hardly a statistically relevant sample size from man’s time on earth.

    
    

    
    

    Commenter
    Irish Phil
    
    Location

    
    

    Date and time
    
    October 03, 2013, 2:16PM
    

  
  
  • 
    

    
    

    150 years long enough for ya

    
    

    
    

    Commenter
    Unusual Suspect
    
    Location

    
    

    Date and time
    
    October 03, 2013, 2:39PM
    

  
  
  • 
    

    
    

    No prize for guessing why property bubble deniers are mostly climate change deniers.

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 2:47PM
    

  
  
  • 
    

    
    

    The last time the Earth was warmer was about 49 million years ago and technically we are still coming out of the last ice age which began about 2.6 million years ago.

    
    

    
    

    Commenter
    Peter
    
    Location
    
    Wiki
    
    Date and time
    
    October 03, 2013, 2:49PM
    

  
  
  • 
    

    
    

    So Irish Phil is prepared to take the gamble that the continual breaking of climate records, towards the hotter end of the scale is just a statistical blip. I hope that he’s right but I’d also want to take action now just in case he’s wrong. That would be money well-spent replacing coal intensive energy generation with renewable sources. All of those coal plants are at or near the end of their working life.

    
    

    
    

    Commenter
    mitch of ACT
    
    Location

    
    

    Date and time
    
    October 03, 2013, 3:00PM
    

  
  
  • 
    

    
    

    Short SWM 2.45. Gift.

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 3:04PM
    

  
  
  • 
    

    
    

    So the earth came out of an ice age by warming and that wasnt humans fault, warmest winter since 1863 (if records began 150 year ago) is humans fault, 60% increase in polar ice this year is a coincidence…. We can all pick “facts” to suit what we want…17% of people know that

    
    

    
    

    Commenter
    WWWish
    
    Location
    
    Melbourne
    
    Date and time
    
    October 03, 2013, 3:24PM
    

  
  
  • 
    

    
    

    Wow 150 years out of 13 Billion provides really accurate data on earth.

    
    

    
    

    Commenter
    No Vision
    
    Location
    
    Sydney
    
    Date and time
    
    October 03, 2013, 3:27PM
    

  
  
  • 
    

    
    

    allan, cool down, the arctic and Antarctic ice caps have grown 3 years in a row! we will be fine. If you stop shorting and being so gloomy you may not have lost a fortune in the last 12 months

    
    

    
    

    Commenter
    Genghis
    
    Location
    
    Lounge
    
    Date and time
    
    October 03, 2013, 3:40PM
    

  
  


• 
  

  
  

  Well in America they said they want to learn what the Australian Government did in 1975 with it’s own shut down. Saying the Australian Government was the first… I never knew this… how come this is never spoken about?

  
  

  
  

  Commenter
  Meh1
  
  Location

  
  

  Date and time
  
  October 03, 2013, 2:00PM

  
  
  • 
    

    
    

    Australia didn’t shut down after the Dismissal in 1975. The gov’t went into caretaker convention mode until the election.

    
    

    
    

    Commenter
    mitch of ACT
    
    Location

    
    

    Date and time
    
    October 03, 2013, 2:19PM
    

  
  
  • 
    

    
    

    Well Huffington Post Live had very interesting information. They even were speaking about what the Queen in England did to act on Australia at that time… so what really happened then? Was before my time…

    
    

    
    

    Commenter
    Meh1
    
    Location

    
    

    Date and time
    
    October 03, 2013, 2:34PM
    

  
  


• 
  

  
  

  worried,

  
  

  years ago a group of littlelandlords tried to get Bayswater renamed Paris!

  
  

  .

  
  

  
  

  Commenter
  Jim Jones
  
  Location
  
  I don’t care where you live or what you do as long as you’re decent
  
  Date and time
  
  October 03, 2013, 1:58PM

  
  


• 
  
  • 
    

    
    

    We have lots of galahs and parrots in bayswater too amongst the gumtrees.

    
    

    
    

    Commenter
    Sue
    
    Location
    
    Amongst the gumtrees
    
    Date and time
    
    October 03, 2013, 2:25PM
    

  
  


• 
  

  
  

  http://theconversation.com/the-unregulated-business-of-property-investment-advice-18792

  
  

  Come on government, it’s way past time to step in a save Australians from themselves.

  
  

  
  

  Commenter
  JohnBB
  
  Location

  
  

  Date and time
  
  October 03, 2013, 1:53PM

  
  


• 
  

  
  

  I come here daily to read the comical comments by the gumnuts.

  
  

  
  

  Commenter
  InvestR48
  
  Location

  
  

  Date and time
  
  October 03, 2013, 1:51PM

  
  
  • 
    

    
    

    Me too. Although I believe these gumnuts are not serious and know they are comical.
    But then again they might be serious.

    
    

    
    

    Commenter
    ORGasmic Giggles
    
    Location

    
    

    Date and time
    
    October 03, 2013, 2:18PM
    

  
  


• 
  

  
  

  I have recently been accepted into Harvard business school to do my MBA. Has anyone here completed that course of study?

  
  

  What do you think they cover in the curriculum? Buying a $500k nothing house in a nothing suburb with debt and renting it out for a few hundred dollars a week?

  
  

  
  

  Commenter
  Bright Eyed
  
  Location
  
  Bushy Tailed
  
  Date and time
  
  October 03, 2013, 1:44PM

  
  
  • 
    

    
    

    No they teach you how to educate a government official for the purpose of carrying our your agenda.

    
    

    
    

    Commenter
    Opinion Only
    
    Location
    
    Melbourne
    
    Date and time
    
    October 03, 2013, 2:23PM
    

  
  
  • 
    

    
    

    Congratulations on passing your bachelors in posting under a fake name.

    
    

    
    

    Commenter
    Gordy
    
    Location
    
    Akman
    
    Date and time
    
    October 03, 2013, 2:24PM
    

  
  
  • 
    

    
    

    Because 99.99% of the Harvard graduated money spinners failed to realise the GFC was coming, happening or what to do when it struck… and to this day still have no idea.

    
    

    The system these losers created, play in and for which they continue to destroy lives and nations with is an abominable abstract of reality. A button press is ‘creating’ money.

    
    

    
    

    Commenter
    Liberator
    
    Location
    
    SEQLD
    
    Date and time
    
    October 03, 2013, 2:27PM
    

  
  
  • 
    

    
    

    oo-ah-ah h -ha- h Oo -ah-a ha- ha – a h – ah -oo-ah-ah h -ha- ha

    
    

    
    

    Commenter
    Kookaburra
    
    Location
    
    Markets Live Gumtree
    
    Date and time
    
    October 03, 2013, 2:46PM
    

  
  
  • 
    

    
    

    they teach you how to be another Warwick Fairfax.

    
    

    
    

    Commenter
    The Terminator
    
    Location

    
    

    Date and time
    
    October 03, 2013, 2:55PM
    

  
  


• 
  

  
  

  Any updates @Chris?

  
  

  With US futures starting to look weak, this might be a bit more of a reality day for the ASX….

  
  

  CommenterChrisLocationSydneyDate and timeOctober 03, 2013, 9:42AM

  
  

  Read more: http://www.smh.com.au/business/markets-live/markets-live-asx-shows-suprise-strength-20131003-2utle.html#ixzz2gcwJkUTr

  
  

  
  

  Commenter
  Captor
  
  Location

  
  

  Date and time
  
  October 03, 2013, 1:43PM

  
  
  • 
    

    
    

    Perhaps the money fleeing the US markets is coming to our little safe-haven and pushing up our stock prices.

    
    

    
    

    Commenter
    mitch of ACT
    
    Location

    
    

    Date and time
    
    October 03, 2013, 2:21PM
    

  
  
  • 
    

    
    

    I am very surprised at the markets strength today, but really doubt we can set new short term highs until the US debt ceiling and shutdown are resolved. Best approach at the moment is trading the range , I am marginally short the market but will look to cover and turn long (hopefully) ahead of a resolution of the US

    
    

    
    

    Commenter
    Chris
    
    Location
    
    Sydney
    
    Date and time
    
    October 03, 2013, 3:32PM
    

  
  


• 
  

  
  

  The Americans are bluffing and the stocktraders are snapping up the bargains.

  
  

  
  

  Commenter
  Insider
  
  Location
  
  Outside
  
  Date and time
  
  October 03, 2013, 1:42PM

  
  
  • 
    

    
    

    Bluffing means nothing so long as the $85B keeps on rolling on which it WILL as it is a separate cash cow to the public service kitty which is empty.

    
    

    
    

    Commenter
    Liberator
    
    Location
    
    SEQLD
    
    Date and time
    
    October 03, 2013, 3:47PM
    

  
  


• 
  

  
  

  My rental incomes go directly into the better stocks monthly.
  Thanks again littlelongtimerenters.

  
  

  
  

  Commenter
  Brian
  
  Location
  
  QLD
  
  Date and time
  
  October 03, 2013, 1:37PM

  
  


• 
  

  
  

  anyone seen allan?
  he he
  up up

  
  

  
  

  Commenter
  egg on face
  
  Location
  
  up up
  
  Date and time
  
  October 03, 2013, 1:19PM

  
  
  • 
    

    
    

    He he… uyou’re/u sounding a bit shrill there alpha. You ok?

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 1:52PM
    

  
  
  • 
    

    
    

    last seen talking to BEN, trying to get a margin loan to cover his ORG and FMG shorts. CBA knocked him back

    
    

    
    

    Commenter
    ORGan donor
    
    Location

    
    

    Date and time
    
    October 03, 2013, 1:53PM
    

  
  
  • 
    

    
    

    Henry Hub price coming to an LNG customer near you.

    
    

    $4, 1/4 of the oil linked price.

    
    

    Uh oh,,,,

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 2:15PM
    

  
  
  • 
    

    
    

    yes. just started his maccas shift
    oh dear.
    gift please
    ……….
    ………….
    …………….

    
    

    
    

    Commenter
    fan of allan
    
    Location

    
    

    Date and time
    
    October 03, 2013, 2:19PM
    

  
  


• 
  

  
  

  5150-5300. 150 point range is usually good for making money, works everytime for me anyway.

  
  

  
  

  Commenter
  Support@4900
  
  Location
  
  ASX200
  
  Date and time
  
  October 03, 2013, 1:02PM

  
  


• 
  

  
  

  The connection between the positive market and the election result is no co-incidence.

  
  

  
  

  Commenter
  Xenaphon
  
  Location

  
  

  Date and time
  
  October 03, 2013, 12:43PM

  
  
  • 
    

    
    

    Tony, Tony, Tony !!!!!!!

    
    

    
    

    Commenter
    adults are back
    
    Location
    
    illawarra
    
    Date and time
    
    October 03, 2013, 1:17PM
    

  
  
  • 
    

    
    

    Correct.

    
    

    
    

    Commenter
    heybert
    
    Location
    
    Sesame Street
    
    Date and time
    
    October 03, 2013, 1:36PM
    

  
  
  • 
    

    
    

    Absolutely, but don’t wake Mitch up, in the middle of his nanny nap!

    
    

    
    

    Commenter
    Julia Abbott
    
    Location

    
    

    Date and time
    
    October 03, 2013, 1:45PM
    

  
  
  • 
    

    
    

    I agree, the Tory Rabbitt has a Senate that will be next to impossible to work with. That means that most of the Lib’s policies will never get thru. The business community will kill PPL and the carbon tax, or ETS is here to stay.

    
    

    
    

    Commenter
    mitch of ACT
    
    Location

    
    

    Date and time
    
    October 03, 2013, 1:53PM
    

  
  
  • 
    

    
    

    I don’t think our market is particularly bullish compared to the US market. It’s just treading water.
    There has been exactly no reaction to the election result.

    
    

    
    

    Commenter
    J.
    
    Location
    
    Syd.
    
    Date and time
    
    October 03, 2013, 2:33PM
    

  
  


• 
  

  
  

  @Allan. I don’t think that boomers give a toss whether or not gen Y want to buy or rent. There is no law saying that gen whine needs to buy. The anti home owner brigade appears to be saying that boomers should sell their houses to them at 20% discount. Would the gen Ys then try and resell at market prices? Politicians have allowed the house price fiasco to fester on forever. They have it within their power to stabilise prices.

  
  

  
  

  Commenter
  Bearly Gruntled
  
  Location
  
  Land of hot air
  
  Date and time
  
  October 03, 2013, 12:25PM

  
  
  • 
    

    
    

    When will the self obsessed boomers stop whining about other generations?
    Your time is running out, go enjoy the rest of your existence.

    
    

    
    

    Commenter
    worried33
    
    Location

    
    

    Date and time
    
    October 03, 2013, 12:40PM
    

  
  


• 
  
  • 
    

    
    

    Of course they do that’s why they’re all over the comments posting sneering comments about renters. Littlelandlords aren’t posting, they want renters to keep renting.

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 12:43PM
    

  
  
  • 
    

    
    

    I don’t think the point is that anyone should sell below market. The point is that we clearly have series problems with the way this country creates housing when one of the most sparsely populated countries has one of the most expensive property markets.

    
    

    
    

    Commenter
    Jimmy
    
    Location

    
    

    Date and time
    
    October 03, 2013, 12:43PM
    

  
  
  • 
    

    
    

    *Serious. Damn spellcheck.

    
    

    
    

    Commenter
    Jimmy
    
    Location

    
    

    Date and time
    
    October 03, 2013, 12:47PM
    

  
  
  • 
    

    
    

    I’m a boomer with an investment property. and guess what, my gen whiner children will inherit it on my passing… End result – they get a house for nothing. not too bad really, I dont know what they are whining about…

    
    

    
    

    Commenter
    DDH
    
    Location

    
    

    Date and time
    
    October 03, 2013, 3:23PM
    

  
  


• 
  

  
  

  its getting ugly out there for the shorters.
  love it.

  
  

  
  

  Commenter
  alpha buffett
  
  Location

  
  

  Date and time
  
  October 03, 2013, 12:19PM

  
  
  • 
    

    
    

    He he.. yeah, WBC, ARI, PMV, FLT, DJS all in the money. Are you ok?

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 12:51PM
    

  
  


• 
  

  
  

  Ian Macfarlane says anyone who is concerned that their groundwater might be contaminated is an anarchist.

  
  

  Stop the anarchists!

  
  

  
  

  Commenter
  Allan
  
  Location
  
  Prahran
  
  Date and time
  
  October 03, 2013, 12:18PM

  
  
  • 
    

    
    

    In the US anti-fracking activists pulled the stunt of saying that at meetings with advocates of drilling they had replaced water at the table with groundwater from near drilling sites. The horrified response from the advocates of drilling gave the big lie that they thought that such water was safe to drink. McFarlane should be publicly challenged to drink water from near drilling sites that he says would be safe and have his children drink that water as well. After all, everyone else is expected to. Lead by example.

    
    

    
    

    Commenter
    mitch of ACT
    
    Location

    
    

    Date and time
    
    October 03, 2013, 12:58PM
    

  
  
  • 
    

    
    

    Mitch you must be able to better than that hoary old chestnut.

    
    

    
    

    Commenter
    Peter
    
    Location
    
    Sunbury
    
    Date and time
    
    October 03, 2013, 1:16PM
    

  
  


• 
  

  
  

  Efficient Market really…

  
  

  or

  
  

  Big Funds playing games today???

  
  

  
  

  Commenter
  EMt
  
  Location

  
  

  Date and time
  
  October 03, 2013, 12:17PM

  
  


• 
  

  
  

  “Rents are increasing close to Sydney”….No they’re not. They’ve gone down over 10% in the past year WITH INCENTIVES.

  
  

  
  

  Commenter
  JohnBB
  
  Location

  
  

  Date and time
  
  October 03, 2013, 12:16PM

  
  
  • 
    

    
    

    I am a “littlelandlord” renting out 2 properties, and both tenants have accepted rent increases consistently over the last 2 years.

    
    

    
    

    Commenter
    Irish Phil
    
    Location

    
    

    Date and time
    
    October 03, 2013, 12:44PM
    

  
  
  • 
    

    
    

    @JohnBB: where do you source your 10%?
    If it is an average rental rate for the market, I think you will find that the average rate is being driven down by an increasing weighting towards new builds of small, pokey apartments.
    Better to analyse at the micro level perhaps.

    
    

    
    

    Commenter
    Irish Phil
    
    Location

    
    

    Date and time
    
    October 03, 2013, 12:50PM
    

  
  
  • 
    

    
    

    @Irish Phil. That post was in response to a comment below. 10% is my anecdotal evidence from the inner south and east. My GF has been considering moving and has sent me links for a year of declining rents and vacant premises where I’ve been there with her at inspections and seemingly not one application taken. The next wk reappears cheaper with a new washing machine and dryer. Our economy stinks horrifically and is getting worse. It’s all a scam. We’ve spent every bit of fat to live this dream. Now we’re going to be woken up. My view is rents will tumble with declining wages and house prices will follow………. I’ve asked this question dozens of times and not one answer. Given, mining’s finished, manufacturing’s dead, youth unemployment 25%, where will the money come from for wages to stay where they are? If people can’t answer this simple question, wtf are they doing investing 40 years of debt in to the most inflated asset in the world? It’s insane.

    
    

    
    

    Commenter
    JohnBB
    
    Location

    
    

    Date and time
    
    October 03, 2013, 1:19PM
    

  
  
  • 
    

    
    

    “Mining’s finished”.
    Seriously??
    My apartment is in Randwick, and certainly increasing in rental. Not sure where you mean by “inner south and east”?

    
    

    
    

    Commenter
    Irish Phil
    
    Location

    
    

    Date and time
    
    October 03, 2013, 2:20PM
    

  
  


• 
  
  • 
    

    
    

    “”Mining’s finished”.Seriously?? My apartment is in Randwick,”……..Yes, seriously. What do you think has provided the money for the wages of the nurses of POW Hospital? Seriously? You don’t see the connection? So back to my unanswered question. Where will Australia get the money to drive wages?

    
    

    
    

    Commenter
    JohnBB
    
    Location

    
    

    Date and time
    
    October 03, 2013, 2:42PM
    

  
  
  • 
    

    
    

    Flats dropped over 6% in real terms.

    
    

    http://blog.residex.com.au/wp-content/uploads/2013/09/Property-Market-Update-August-13.jpg

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 2:52PM
    

  
  
  • 
    

    
    

    “Where will Australia get the money to drive wages?”

    
    

    Do you mean private Australian firms? If so, expansion into Asia is already delivering record revenues for many firms.

    
    

    
    

    Commenter
    Irish Phil
    
    Location

    
    

    Date and time
    
    October 03, 2013, 4:19PM
    

  
  


• 
  

  
  

  You ok alpha? he he….

  
  

  
  

  Commenter
  Allan
  
  Location
  
  Prahran
  
  Date and time
  
  October 03, 2013, 12:05PM

  
  


• 
  

  
  

  11:35am The bitcoin, valued by many for its anonymity, fell to $US129 …… The original bitcoin was priced at $10 usd. What a nerve to just invent money as a series of 0′s and 1′s. Who in their right mind would pay $129 for virtually nothing. Criminals it would appear. At a guess I would suspect that the FBI has been tracing a lot of transactions to help locate possible criminals. Our own currencies used to be backed by gold. Now they are backed by the promises of politicians.

  
  

  
  

  Commenter
  Bearly Gruntled
  
  Location
  
  Land of hot air
  
  Date and time
  
  October 03, 2013, 12:05PM

  
  
  • 
    

    
    

    The US dollar is also backed by the criminals and bolshevists at the Federal Reserve. Same same, innit?

    
    

    
    

    Commenter
    Dr No
    
    Location
    
    Sydney
    
    Date and time
    
    October 03, 2013, 2:29PM
    

  
  


• 
  

  
  

  FFS, who is buying today? does somebody know something?

  
  

  
  

  Commenter
  J.
  
  Location
  
  Syd.
  
  Date and time
  
  October 03, 2013, 11:51AM

  
  
  • 
    

    
    

    Someone forget to tell you we are in a bull market?

    
    

    
    

    Commenter
    Mister5100
    
    Location

    
    

    Date and time
    
    October 03, 2013, 12:10PM
    

  
  
  • 
    

    
    

    Another bout of O/S markets looking for anything REMOTELY safe… sadly Aussie banks are in the firing line for foreign cashed up instos. Even at 1.5% cash rate – our banks will still take their fair share of foreign coin. The rest of the world could be at war… and yet… the optimists will push a market! Just watch the starving wolves around the world.

    
    

    
    

    Commenter
    Liberator
    
    Location
    
    SEQLD
    
    Date and time
    
    October 03, 2013, 12:19PM
    

  
  
  • 
    

    
    

    Classic pump and dump.

    
    

    
    

    Commenter
    The Oracle
    
    Location
    
    2233
    
    Date and time
    
    October 03, 2013, 12:21PM
    

  
  
  • 
    

    
    

    Very clever mister. To me it looks like a fractal retest getting ready to dive lower. time will tell.

    
    

    
    

    Commenter
    J.
    
    Location
    
    Syd.
    
    Date and time
    
    October 03, 2013, 12:50PM
    

  
  
  • 
    

    
    

    Looking very much that way @The Oracle

    
    

    
    

    Commenter
    Old Tmer
    
    Location

    
    

    Date and time
    
    October 03, 2013, 12:59PM
    

  
  
  • 
    

    
    

    “Markets Live: Eyes on US crisis”

    
    

    OK….. which eye ?

    
    

    
    

    Commenter
    Third Eye Blind
    
    Location
    
    South of the border
    
    Date and time
    
    October 03, 2013, 1:05PM
    

  
  


• 
  

  
  

  Reality is hitting retailers right between the eyes. The slump is not going away. People are spending billions buying direct via the interent. Rent seeking middlemen are no longer required.

  
  

  DJS, PMV shorts in the money.

  
  

  
  

  Commenter
  Allan
  
  Location
  
  Prahran
  
  Date and time
  
  October 03, 2013, 11:51AM

  
  
  • 
    

    
    

    yawn…..

    
    

    
    

    Commenter
    Captor
    
    Location

    
    

    Date and time
    
    October 03, 2013, 12:12PM
    

  
  


• 
  
  • 
    

    
    

    LOL yawn… it’s not masking your fear.

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 12:47PM
    

  
  
  • 
    

    
    

    Have to agree on that… those in denial know it.

    
    

    
    

    Commenter
    Meh1
    
    Location

    
    

    Date and time
    
    October 03, 2013, 1:57PM
    

  
  


• 
  

  
  

  LEI have not caught with breaching law yet. It seems it caught up with a battle to clean up their name. There are many allegations with many companies to win deals for their own benefit, that’s how the businesses work. I wouldn’t worry about these allegations with a good company and I bought some LEI this morning…haha

  
  

  
  

  Commenter
  Sams
  
  Location
  
  Melbourne
  
  Date and time
  
  October 03, 2013, 11:50AM

  
  


• 
  

  
  

  If there’s something I’ve learned from the modern Corporation is…”I knew nothing No comment”, beautiful indeed, nothing beats it. I use it everyday in every possible way along with “I don’t recollect” and the last resort…”I hear voices”….

  
  

  
  

  Commenter
  Wise Businessman
  
  Location
  
  Sydney
  
  Date and time
  
  October 03, 2013, 11:43AM

  
  


• 
  

  
  

  “short the WBC”
  oh dear
  he he

  
  

  
  

  Commenter
  Charlie Aitken
  
  Location
  
  @winning
  
  Date and time
  
  October 03, 2013, 11:41AM

  
  
  • 
    

    
    

    Short in the money. he he…

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 12:07PM
    

  
  


• 
  

  
  

  The power is up !!

  
  

  
  

  Commenter
  The Observer
  
  Location

  
  

  Date and time
  
  October 03, 2013, 11:41AM

  
  


• 
  

  
  

  you ok allan?
  still online?

  
  

  
  

  Commenter
  fan of allan
  
  Location
  
  ….
  
  Date and time
  
  October 03, 2013, 11:35AM

  
  
  • 
    

    
    

    Yep, the ASX has officially gone mental.

    
    

    
    

    Commenter
    The Oracle
    
    Location
    
    2233
    
    Date and time
    
    October 03, 2013, 11:46AM
    

  
  


• 
  

  
  

  Get it through your heads baby boomers. Gen Y don’t want your overpriced nothing houses in nothing suburbs. They prefer to rent for $180/wk each close to the city.

  
  

  
  

  Commenter
  Allan
  
  Location
  
  Prahran
  
  Date and time
  
  October 03, 2013, 11:34AM

  
  
  • 
    

    
    

    your a mess today
    hahahahahahahah
    no banks .. no party….capish amateur?

    
    

    
    

    Commenter
    no banks .. no party
    
    Location

    
    

    Date and time
    
    October 03, 2013, 11:43AM
    

  
  
  • 
    

    
    

    Go on, throw your money away – and keep their place rented. As a non-baby boomer, I laugh at you. Ha ha ha.
    In 10 years time they’ll have paid it off – and you’ll still be throwing your money away at them. Well done!

    
    

    
    

    Commenter
    Someone
    
    Location
    
    Brisbane
    
    Date and time
    
    October 03, 2013, 11:53AM
    

  
  
  • 
    

    
    

    So true Allan. Many baby boomers in Australia with a primary school education think the investment world comprises of bubble priced rental properties financed with debt, Australian bank shares, and Telstra shares lol They then spend their time trolling a blog like this in pigeon English. There’s a lot of tragedy out there.

    
    

    
    

    Commenter
    Gordon Akman
    
    Location
    
    Broadbeach
    
    Date and time
    
    October 03, 2013, 11:56AM
    

  
  
  • 
    

    
    

    He he… yep GA there’s a couple posted above you.

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 12:04PM
    

  
  
  • 
    

    
    

    “your a mess” hmm… the Taylor’s Lakes primary school has a lot to answer for.

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 12:09PM
    

  
  


• 
  
  • 
    

    
    

    in unison…tweedle dee and tweedle dum

    
    

    
    

    Commenter
    which bank?
    
    Location

    
    

    Date and time
    
    October 03, 2013, 12:16PM
    

  
  
  • 
    

    
    

    hey GA, anymore sob stories?

    
    

    
    

    Commenter
    buffett alpha
    
    Location

    
    

    Date and time
    
    October 03, 2013, 12:24PM
    

  
  
  • 
    

    
    

    Akman agrees with Allan….SHOCK

    
    

    
    

    Commenter
    Brown
    
    Location
    
    Nose
    
    Date and time
    
    October 03, 2013, 12:31PM
    

  
  
  • 
    

    
    

    Allan is Akman!

    
    

    
    

    Commenter
    No Brainer
    
    Location

    
    

    Date and time
    
    October 03, 2013, 2:14PM
    

  
  


• 
  

  
  

  So where does everyone think LEI will bottom out at?

  
  

  
  

  Commenter
  tim_r
  
  Location
  
  Brisbane
  
  Date and time
  
  October 03, 2013, 11:32AM

  
  
  • 
    

    
    

    I bought some at 17.80, if it gets itself above 18 and finds a bit of support there I think it won’t look back.

    
    

    
    

    Commenter
    Andrew137
    
    Location

    
    

    Date and time
    
    October 03, 2013, 11:40AM
    

  
  
  • 
    

    
    

    One thing I am always wary off is the effect negative publicity has in the short term on stocks. It may well be nothing to worry about and todays price is a good discount from yesterday. I am looking at this stock with the Infrastructure being talked up by the Govt, but will wait for a little while and let the dust settle. Long term it should be clear skies. I recall what happened to WHC this year with the negative press about Nathan Tinkler. It seemed like every time his name was mentioned the share price went down. Different circumstances I know, but something to keep in mind. Happy trading!

    
    

    
    

    Commenter
    ajay
    
    Location

    
    

    Date and time
    
    October 03, 2013, 12:27PM
    

  
  


• 
  

  
  

  Dear groupies please buy some more bank shares I would like to add to shorts. Thanks in advance.

  
  

  
  

  Commenter
  Allan
  
  Location
  
  Prahran
  
  Date and time
  
  October 03, 2013, 11:27AM

  
  


• 
  

  
  

  The pollyannas are ripping into the banks. Maybe they haven’t noticed that the USA is embroiled in a nasty domestic which is pouring blck smoke around the planet. The USA gave us the GFC and now they give us the Tea Party. These tea drinkers are low level wealthy types in general who don’t want to pay a cent extra for the poor. Obama needs to hold out till at least October 17th so he can link the 2 issues together when he backs down on Obamacare. Meanwhile 40 million voters will have enrolled and Obama hopes they will vent their anger against the Teas in their next election. May turn out to be one of the biggest foot shooting of all time.

  
  

  
  

  Commenter
  Bearly Gruntled
  
  Location
  
  Land of hot air
  
  Date and time
  
  October 03, 2013, 11:21AM

  
  
  • 
    

    
    

    Obama won’t back down on healthcare. The Democrats best chance to keep the white house another 8 years is to hang on and do whatever it takes to keep it in place long enough for the public to see that its good living in a country where a cancer diagnosis doesn’t bankrupt you and your family.

    
    

    The demographics are running strongly against the Republicans. They will need to adapt or die.

    
    

    IMHO anyway…..

    
    

    
    

    Commenter
    Jimmy
    
    Location

    
    

    Date and time
    
    October 03, 2013, 11:31AM
    

  
  
  • 
    

    
    

    Bearly, you should no better than this , Pollyannas do not influence the price of an 80B dollar company
    I put sell at wbc at 32.63, early and pulled the plug at 32.56, glad I did

    
    

    
    

    Commenter
    stuarth44
    
    Location

    
    

    Date and time
    
    October 03, 2013, 1:56PM
    

  
  
  • 
    

    
    

    @Stu.. I am wanting to buy back in to some banks, short term, at a decent price. These prices have too much risk attached.

    
    

    
    

    Commenter
    Bearly Gruntled
    
    Location
    
    Land of hot air
    
    Date and time
    
    October 03, 2013, 4:01PM
    

  
  


• 
  

  
  

  I wonder if our mkt will keep going up this arvo. Up 30 pts now.
  Tomorrow is Friday, my guess is our mkt might go down a bit this arvo.

  
  

  
  

  Commenter
  Wil
  
  Location
  
  Melb
  
  Date and time
  
  October 03, 2013, 11:18AM

  
  
  • 
    

    
    

    hi wil, what do your indicator’s tell you today? end of the world 2moro?
    thanks

    
    

    
    

    Commenter
    wiseman
    
    Location

    
    

    Date and time
    
    October 03, 2013, 11:33AM
    

  
  


• 
  

  
  

  Stop the boats!
  Stop the gays!
  Stop the science!
  Stop the animal welfare!

  
  

  Get with the programme!

  
  

  
  

  Commenter
  Allan
  
  Location
  
  Prahran
  
  Date and time
  
  October 03, 2013, 11:13AM

  
  


• 
  
  • 
    

    
    

    I’m thinking of getting t-shirts made for the Markets Live blog.

    
    

    Allan’s are, on the front: “Yikes” and on the back “What will that do to house prices”

    
    

    or, a cartoon shopping mall coming out of a toaster

    
    

    The last would simply say ‘Thanks for being a fan’

    
    

    I’m just not sure they’d be much of a market ;o)

    
    

    EDs: Sold.

    
    

    
    

    Commenter
    heybert
    
    Location
    
    Sesame Street
    
    Date and time
    
    October 03, 2013, 1:45PM
    

  
  
  • 
    

    
    

    *Rubs hands together*

    
    

    Excellent. I’ll make enough money to buy a property (highly leveraged of course) and rent it to Allan! Hoorah!

    
    

    Hmmm. Not sure Allan would live in an average suburb though.

    
    

    (Another Allan one would be simply “FMG” on the front and ‘Gift’ on the back)

    
    

    
    

    Commenter
    Gordy
    
    Location
    
    Akman
    
    Date and time
    
    October 03, 2013, 2:29PM
    

  
  
  • 
    

    
    

    Send one to Rory. he can wear it on his long walk.

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 2:50PM
    

  
  
  • 
    

    
    

    Do they come with matching shorts?

    
    

    
    

    Commenter
    Unusual Suspect
    
    Location

    
    

    Date and time
    
    October 03, 2013, 4:17PM
    

  
  


• 
  

  
  

  short the ANZ @$31
  you serious?
  ………
  …………
  …………..
  please gift us asap

  
  

  
  

  Commenter
  fan of allan
  
  Location

  
  

  Date and time
  
  October 03, 2013, 11:07AM

  
  
  • 
    

    
    

    I think when he says “gift” he means he is providing a gift to those who buy the stock from him.

    
    

    
    

    Commenter
    Andrew137
    
    Location

    
    

    Date and time
    
    October 03, 2013, 11:27AM
    

  
  
  • 
    

    
    

    yep,just ask those that bought WBC, NAB , ANZ from the dill in june.
    keep shorting blue chip in a major uptrend legend

    
    

    
    

    Commenter
    buffett alpha
    
    Location

    
    

    Date and time
    
    October 03, 2013, 12:23PM
    

  
  
  • 
    

    
    

    LOL sell high, buy low. You’ll get it one day….

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 1:56PM
    

  
  


• 
  

  
  

  The pollyannas are going berzerk?

  
  

  
  

  Commenter
  geoff
  
  Location
  
  burraneer
  
  Date and time
  
  October 03, 2013, 11:05AM

  
  
  • 
    

    
    

    Mirroring the Sydney real estate market.

    
    

    
    

    Commenter
    The Oracle
    
    Location
    
    2233
    
    Date and time
    
    October 03, 2013, 11:49AM
    

  
  


• 
  

  
  

  no banks .. no party.
  know what i mean?

  
  

  
  

  Commenter
  oils aint oils
  
  Location

  
  

  Date and time
  
  October 03, 2013, 11:05AM

  
  


• 
  

  
  

  Front page leader of New York Daily News: House of Turds. Succintly sums up govt shutdown.

  
  

  
  

  Commenter
  Seb Gonzo
  
  Location
  
  New Farm
  
  Date and time
  
  October 03, 2013, 11:04AM

  
  


• 
  

  
  

  $A heading back in the right direction but still too high. The RBA is almost out of ammo. Sure they have propped up asset prices temporarily but now they have nowhere to go.

  
  

  
  

  Commenter
  Allan
  
  Location
  
  Prahran
  
  Date and time
  
  October 03, 2013, 11:04AM

  
  


• 
  

  
  

  “short the NAB” he he

  
  

  
  

  Commenter
  buffett alpha
  
  Location
  
  @winning
  
  Date and time
  
  October 03, 2013, 11:03AM

  
  
  • 
    

    
    

    Yup….bought some NAB shorts today at 35.06….

    
    

    
    

    Commenter
    mirage
    
    Location

    
    

    Date and time
    
    October 03, 2013, 1:21PM
    

  
  


• 
  
  • 
    

    
    

    Sold the NAB puts at 35.92….

    
    

    
    

    Commenter
    mirage
    
    Location

    
    

    Date and time
    
    October 03, 2013, 3:40PM
    

  
  
  • 
    

    
    

    OOOppppsssssss…..meant at 34.92….

    
    

    
    

    Commenter
    mirage
    
    Location

    
    

    Date and time
    
    October 03, 2013, 4:12PM
    

  
  


• 
  

  
  

  No wonder its Fairfax media whose journos have always been hand in gloves with the bear cartel trying to hammer the stock price of Leighton for such a long time. I guess Fairfax won,t have enough courage to publish this.

  
  

  
  

  Commenter
  SJ
  
  Location
  
  Melbourne
  
  Date and time
  
  October 03, 2013, 10:57AM

  
  


• 
  

  
  

  Before Barack continues to preach to the rest of the world he had better get his own house in order! Grandstanding and fine speeches do nothing but delay dealing with your national issues. The “we” who is in trouble is “you” and as to being absolutely unnecessary “time for your side to negotiate” for these Republicans like it or not represent the views of their voters and if it is still not clear this is supposed to be a democracy ! And as for “Factions” why you are just another one. Just forget the fine speeches and trying to make everyone else responsible and that sound good to the public and do what you are paid to do and that is run the country “the US that is” and “not the world.”

  
  

  
  

  Commenter
  Optimist
  
  Location
  
  Still amazingly!
  
  Date and time
  
  October 03, 2013, 10:52AM

  
  


• 
  

  
  

  Strong rumours circulating that sensa slim man a Mr Peter Foster is hiding out in the tax haven of Vanuatu

  
  

  
  

  Commenter
  Shaun the sheep
  
  Location
  
  Richmond
  
  Date and time
  
  October 03, 2013, 10:44AM

  
  


• 
  

  
  

  Oh dear, Leighton caught red handed.
  The RBA, AWB and now Leighton. Corporate Australia is rife with corruption.

  
  

  
  

  Commenter
  Allan
  
  Location
  
  Prahran
  
  Date and time
  
  October 03, 2013, 10:27AM

  
  
  • 
    

    
    

    Royal commission. Add FIRB selling existing housing to foreigners.

    
    

    
    

    Commenter
    JohnBB
    
    Location

    
    

    Date and time
    
    October 03, 2013, 10:46AM
    

  
  
  • 
    

    
    

    Corporations are corrupt… and this comes as a surprise to you? Have you been living under Uluru?

    
    

    
    

    Commenter
    Oragelo
    
    Location

    
    

    Date and time
    
    October 03, 2013, 11:00AM
    

  
  
  • 
    

    
    

    Always will be corrupt with a Labor Government run by the thugs in the union movement!

    
    

    
    

    Commenter
    Captor
    
    Location

    
    

    Date and time
    
    October 03, 2013, 11:00AM
    

  
  
  • 
    

    
    

    Agree on FIRB approving foreign owned home sales and Chinese acquisition of prime agricultural-land with associated water rights…

    
    

    All the while Coles and Woolies are putting farmers to the sword by drip feeding our entire food chain market with cheaply imported fruits, veggies and metas… China then continues to secure the productive land so that in the very near future… FIFO Chinese workers will tend the farms and sell back to us cheaply made food… it is happening, like it or not.

    
    

    
    

    Commenter
    Liberator
    
    Location
    
    SEQLD
    
    Date and time
    
    October 03, 2013, 11:08AM
    

  
  
  • 
    

    
    

    Did I say I was surprised? Stop making stuff up.

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 11:31AM
    

  
  
  • 
    

    
    

    @Captor, are you saying that corporations are in cahoots with the unions. I always thought that the 2 were mortal enemies. Was your brain in gear when you typed that.
    I hope that you know enough about current events to realise that most of the individuals mentioned in the Obeid/Mcdonald ICAC enquiry were businessmen known for their Liberal links. Corruption knows no political boundaries.

    
    

    
    

    Commenter
    mitch of ACT
    
    Location

    
    

    Date and time
    
    October 03, 2013, 2:07PM
    

  
  


• 
  

  
  

  Wages are up, homes are up, stocks are up.
  All is well again.
  Boys are up.
  Shorties as usual dribblin.

  
  

  
  

  Commenter
  Kev
  
  Location
  
  Sydney
  
  Date and time
  
  October 03, 2013, 10:24AM

  
  
  • 
    

    
    

    Wages up? Got a link? Not sure stocks are up, they’ve reached major resistance and seem to me will be heading lower. As for housing, completely utterly ridiculously over priced with “fear of missing out” by INVESTORS the driver. The epitome of a bubble, with no fundamentals., they will lose their money.

    
    

    
    

    Commenter
    JohnBB
    
    Location

    
    

    Date and time
    
    October 03, 2013, 10:50AM
    

  
  
  • 
    

    
    

    My wages are same, my house same, my stocks crap, term deposits same, job security laughable and so on…Reality check Kev!

    
    

    
    

    Commenter
    Realistic
    
    Location
    
    Sydney
    
    Date and time
    
    October 03, 2013, 11:06AM
    

  
  


• 
  
  • 
    

    
    

    You dribbling over the boys being up is hardly suitable for this blog.

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 11:10AM
    

  
  
  • 
    

    
    

    Johnny you seem to think homes, wages and stocks are all overpriced and heading down when government figures show the opposite.
    Previously you have stated you have transferred all your money overseas and you dont pay any taxes and refuse to do so.
    How are you contributing to the Australian economy? No offense johnny.

    
    

    
    

    Commenter
    cherry on top
    
    Location

    
    

    Date and time
    
    October 03, 2013, 11:20AM
    

  
  
  • 
    

    
    

    Stocks up – a few ASX20 stocks are holding the entire market up at this level. More than the majority of ASX200 stocks are sitting at 5-10yr lows!!! Have a look at the stocks which also fell OUT of the ASX50/100/200 over the last 5 years. There are super funds still sitting below 08 levels!

    
    

    
    

    Commenter
    Liberator
    
    Location
    
    SEQLD
    
    Date and time
    
    October 03, 2013, 11:21AM
    

  
  
  • 
    

    
    

    @cherry on top……..” government figures show the opposite.”………Now that is the funniest thing I’ve read for a week. When did I say I don’t and refuse to pay tax? You’re making things up mate………..”How are you contributing to the Australian economy? No offense johnny.”…..Are you serious? You think loyalty has any place in today’s world? It’s every one for themselves, perpetuated by the disgusting people we continually vote for. Give me another giggle cherry on top. Tell me where wage increases are coming from to support all this froth you speak of.

    
    

    
    

    Commenter
    JohnBB
    
    Location

    
    

    Date and time
    
    October 03, 2013, 11:43AM
    

  
  


• 
  

  
  

  Get it through your heads kids there is no property bubble.
  If you go to auction be prepared to bid more for the home you and others really like and want. Its simple.
  All buyers are happy to pay more for quality.
  Renters spend a lifetime complaining.
  The comments made here are by the unemployed renters talking bubbles daily.

  
  

  
  

  Commenter
  Sue
  
  Location
  
  Bayswater
  
  Date and time
  
  October 03, 2013, 10:19AM

  
  
  • 
    

    
    

    Renter saves 20% deposit… doing the right thing… goes to Auction and foreigners outbid each other up another $120K past reserve on a dog box nothing house!

    
    

    
    

    Commenter
    Liberator
    
    Location
    
    SEQLD
    
    Date and time
    
    October 03, 2013, 10:46AM
    

  
  
  • 
    

    
    

    Incorrect Sue. Ridiculously rich by knowing when to buy and when not to. There are no fundamentals behind property prices with returns of 3%. OMFG. “Fear of missing out” is driving this market. Missing out on what? It’s cheaper renting while investing/saving. You property bulls will be burned, there’s nothing more certain. Wages will correct in line with our competitors and house prices will more than halve. Any ideas Sue, where wage increases might come from to support growing rents? Didn’t think so.

    
    

    
    

    Commenter
    JohnBB
    
    Location

    
    

    Date and time
    
    October 03, 2013, 10:56AM
    

  
  
  • 
    

    
    

    Nope, not a renter and not unemployed. Premise wrong, conclusion wrong.

    
    

    The vast majority of littlelandlords are making losses. No sympathy but sympathy for the first home buyers who have to wait until the current madness is dealt with.

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 11:01AM
    

  
  
  • 
    

    
    

    Renters ought to offer more for quality rental properties, why stick with the crappy
    nothing houses ?

    
    

    
    

    Commenter
    Adrian
    
    Location

    
    

    Date and time
    
    October 03, 2013, 11:03AM
    

  
  
  • 
    

    
    

    “foreigners outbid each other up another $120K”………..Why won’t FIRB honor freedom of info request on what’s been sold to whom? Present law is SUPPOSED to prevent foreigners buying existing property. So, we’d be expecting that $20m property will be demolished within the required twelve months right?

    
    

    
    

    Commenter
    JohnBB
    
    Location

    
    

    Date and time
    
    October 03, 2013, 11:05AM
    

  
  
  • 
    

    
    

    i’m sure Bayswater is the epitome of quality…
    btw, why pay $650-700k to buy a place when you can rent the same thing out for $400 per week? it doesn’t make sense, not even at RECORD LOW interest rates.

    
    

    
    

    Commenter
    worried33
    
    Location

    
    

    Date and time
    
    October 03, 2013, 11:11AM
    

  
  
  • 
    

    
    

    Blimey work at Ray White must be slow today and you have the chance to advertise on blogs. They love to ramp housing (the market is always good;). ), auctions are best (so our rent-a-crowd can create a mindless frenzy) and renters always complain (mainly cos the real estate agent is useless and not interested)

    
    

    
    

    Commenter
    The Not-So-Magic Roundabout
    
    Date and time
    
    October 03, 2013, 11:16AM
    

  
  
  • 
    

    
    

    @Worried: who is buying at $700k and renting at $400 pw?

    
    

    I rent my home, as I agree prices are too high to live in the suburb I want ($1m for a 2 bed house?!? Crazy).

    
    

    However I also own an apartment in Sydney that I bought for $500k, and rent for $600 pw. Rents are increasing close to Sydney, and rent covers repayments at the moment.

    
    

    
    

    Commenter
    Irish Phil
    
    Location
    
    Balmain
    
    Date and time
    
    October 03, 2013, 11:55AM
    

  
  
  • 
    

    
    

    “Rents are increasing close to Sydney”….No they’re not. They’ve gone down over 10% in the past year WITH INCENTIVES.

    
    

    
    

    Commenter
    JohnBB
    
    Location

    
    

    Date and time
    
    October 03, 2013, 12:14PM
    

  
  
  • 
    

    
    

    a friend bought a place in Glen Waverley (Melbourne) last week, paid $655k, he is renting it out for $390 per week.
    Prices around my place (Doncaster) are around $650-700k, renting for around $420ish.

    
    

    My feeling is that prices will rise at least another 10% by end of year, however by early next year this once great country will be in recession.

    
    

    
    

    Commenter
    worried33
    
    Location

    
    

    Date and time
    
    October 03, 2013, 12:18PM
    

  
  


• 
  
  • 
    

    
    

    @worried. try this one for size. 2br unit in coogee for 620k rented out for 690 per week. just a smidge over 5.75% gross return. No interest cost either as i didnt borrow to buy it. show me a term deposit cracking that out.

    
    

    
    

    Commenter
    Bunyip66
    
    Location

    
    

    Date and time
    
    October 03, 2013, 12:39PM
    

  
  
  • 
    

    
    

    @worried, if they are indeed legitimate purchase and rental rates, then the Melbourne property market is pretty sick.
    Sydney would appear to be different, possibly due to a higher rental demand from overseas workers and students, I don’t know. Less rental stock?

    
    

    
    

    Commenter
    Irish Phil
    
    Location

    
    

    Date and time
    
    October 03, 2013, 12:48PM
    

  
  
  • 
    

    
    

    He he… yeah and 400 flats went up in High Street Prahran, 2BR $750K, rent $420/week and they’re not moving.

    
    

    Ouch!

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 12:49PM
    

  
  
  • 
    

    
    

    quality? show me a quality AU home please? one that in 300 years someone watching a tv programme will say “Wow look at that”
    what we do wrong? we build without basements, we build one story of paperweight and with a 15 degree pitch on the roof, we do not utilise the land area, then we wonder when a tiny 100km/h wind blows the bloody thing down
    Hey kids get a degree in mech eng. or some science and go overseas where you,ll but a house that the third pig built at 30%^ of the price

    
    

    
    

    Commenter
    stuarth44
    
    Location

    
    

    Date and time
    
    October 03, 2013, 2:22PM
    

  
  


• 
  

  
  

  It will be interesting to watch the share price of LEI in the immediate future. I would be feeling a bit nervous if I was a current holder

  
  

  
  

  Commenter
  ajay
  
  Location

  
  

  Date and time
  
  October 03, 2013, 10:17AM

  
  
  • 
    

    
    

    It’s all old news. I have a buy order in at 17.80, hoping for a decent recovery into the end of the day and tomorrow.

    
    

    
    

    Commenter
    Andrew137
    
    Location

    
    

    Date and time
    
    October 03, 2013, 10:29AM
    

  
  
  • 
    

    
    

    I am sure you will get it cheaper if you wait Andrew

    
    

    
    

    Commenter
    ajay
    
    Location

    
    

    Date and time
    
    October 03, 2013, 10:44AM
    

  
  
  • 
    

    
    

    That may well be the case. If it falls further I will add to my initial purchase.

    
    

    
    

    Commenter
    Andrew137
    
    Location

    
    

    Date and time
    
    October 03, 2013, 10:55AM
    

  
  
  • 
    

    
    

    However harsh this may sound, doing business in Asia will involve corruption. There is no other way of doing business there. Only other option is not to do any business there.

    
    

    
    

    Commenter
    Ronn
    
    Location
    
    Sydney
    
    Date and time
    
    October 03, 2013, 11:34AM
    

  
  


• 
  

  
  

  Does anyone have any thoughts on MBN?
  With a position in them already, I’m looking to offset losses for future potential gains.
  Theoretically if they release any positive news they might skyrocket.
  Or, I could be risking more cash for nothing. Who really knows, maybe I just answered my own question.

  
  

  Did anyone buy in after the big drop?

  
  

  
  

  Commenter
  Guy
  
  Location
  
  with MBN shares
  
  Date and time
  
  October 03, 2013, 10:17AM

  
  
  • 
    

    
    

    Yup…..went long the big miners overnight and sold them again this morning….now waiting to see how the deterioating US sutuations affects the markets today….

    
    

    
    

    Commenter
    mirage
    
    Location

    
    

    Date and time
    
    October 03, 2013, 10:47AM
    

  
  
  • 
    

    
    

    Guy – sorry about my reply….did not read your post properly…..

    
    

    
    

    Commenter
    mirage
    
    Location

    
    

    Date and time
    
    October 03, 2013, 10:59AM
    

  
  


• 
  

  
  

  How often do we read or hear that developing countries are corrupt as all hell. The inference is that if you want to do business there then you need to grease many palms. But the laws of Aus say ”thou must not bribe”. This law is but a basic motherhood statement set in law. It seems obvious that everyone else is probably doing it. One could say that some political donations fill this role here in Aus. The status quo will continue with the rider of ” don’t get caught”.

  
  

  
  

  Commenter
  Bearly Gruntled
  
  Location
  
  Land of hot air
  
  Date and time
  
  October 03, 2013, 10:15AM

  
  
  • 
    

    
    

    Or, if you were seeking to influence outcomes here without resorting to the brown envelope method, you could form your own political party and get yourself elected to the Reps with 3 Senators in tow. Nice one Clive.

    
    

    
    

    Commenter
    mitch of ACT
    
    Location

    
    

    Date and time
    
    October 03, 2013, 10:33AM
    

  
  


• 
  

  
  

  “Until this week the official count for the past financial year showed four of the 12 months in surplus. A massive series of revisions means none are now in surplus and the total deficit is approaching $18 billion rather than the previously thought $11 billion.”

  
  

  www.smh.com.au/business/recount-puts-dent-in-trade-data-20131002-2ussi.html#ixzz2gc3Byx6M

  
  

  So that’s a straight 20 months of negative trade balance. The massive switch over to internet buying direct from China is bypassing the middleman rent seekers.

  
  

  “The next frontier will be “intangible” imports – books, music, software, online subscriptions, gambling – all delivered without a parcel crossing the oceans.”

  
  

  Yep, and that’s goodbye to another oligopoly, free to air tv with its annoying ads blasting away every few minutes. What is it with Channel 7? their ad volume is double the program volume.

  
  

  Short department stores and jb hifi.

  
  

  
  

  Commenter
  Allan
  
  Location
  
  Prahran
  
  Date and time
  
  October 03, 2013, 10:12AM

  
  


• 
  

  
  

  Shorters should have a field day over the next 2-3 weeks!!

  
  

  
  

  Commenter
  obiwan
  
  Location

  
  

  Date and time
  
  October 03, 2013, 9:50AM

  
  
  • 
    

    
    

    Yeah when the Americans self destruct the shorters can make a dollar if their timing is right.
    Good luck in 2-3 weeks time. lol

    
    

    
    

    Commenter
    Pete
    
    Location

    
    

    Date and time
    
    October 03, 2013, 10:55AM
    

  
  
  • 
    

    
    

    Been waiting for this period in the debt ceiling cycle. Happy hunting is a coming! Wonder how long the USofA can make a few corps rich by handing out $85B monthly incomes…

    
    

    
    

    Commenter
    Liberator
    
    Location
    
    SEQLD
    
    Date and time
    
    October 03, 2013, 12:34PM
    

  
  


• 
  

  
  

  I took up the Australian Agricultural Company Limited (AAC) rights offer. Hopefully the share price perks up soon and I can get out of this stock lol

  
  

  
  

  Commenter
  Gordon Akman
  
  Location
  
  Broadbeach
  
  Date and time
  
  October 03, 2013, 9:49AM

  
  
  • 
    

    
    

    The recent reconciliation (grovelling apology by Abbott) with Indonesia over the live-beef trade should help AAC out.

    
    

    
    

    Commenter
    mitch of ACT
    
    Location

    
    

    Date and time
    
    October 03, 2013, 10:00AM
    

  
  
  • 
    

    
    

    And to think the modern animal liberation movement started with Peter Singer, an Australian.

    
    

    Where is the political party brave enough to ban live exports?

    
    

    Cowards all.

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 10:15AM
    

  
  
  • 
    

    
    

    Peter Singers vegetarian drive has been highly successful. Good to see Allan is on board. The next big push is to remove all carnivores. What could be more cruel then a mangy lion chasing then chowing down on a startled wildebeest. Don’t get me started on those beastly tuna. Thanks again Allan for defending the lowly monocotyledon munchers.

    
    

    
    

    Commenter
    Punter
    
    Location

    
    

    Date and time
    
    October 03, 2013, 10:52AM
    

  
  
  • 
    

    
    

    I took up the offer too Gordon, but I picked up some extra as well.

    
    

    Unlike you I hope to hold this one long term. I think once their processing facility is completed in Darwin it will put the company in a whole new league, no longer just a ‘raise cattle and let others do the rest’ company

    
    

    
    

    Commenter
    Fred
    
    Location

    
    

    Date and time
    
    October 03, 2013, 11:08AM
    

  
  
  • 
    

    
    

    A lion is an animal what’s your excuse? Quick there’s a bucket of KFC with your name on it.

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 11:46AM
    

  
  
  • 
    

    
    

    @Fred the “buy and hold” strategy doesn’t work for highly volatile stocks and commodities etc. Look at the share price graph for AAC as a perfect example. I have traded it between $1.10 and $1.25 in recent months. Highly volatile stocks (most commodity related stocks) quite often trade in easily identified ranges.

    
    

    
    

    Commenter
    Gordon Akman
    
    Location
    
    Broadbeach
    
    Date and time
    
    October 03, 2013, 11:46AM
    

  
  
  • 
    

    
    

    Allan –

    
    

    Stop the meat!
    Stop the houses!

    
    

    
    

    Commenter
    Fred
    
    Location

    
    

    Date and time
    
    October 03, 2013, 11:46AM
    

  
  


• 
  

  
  

  With US futures starting to look weak, this might be a bit more of a reality day for the ASX….

  
  

  
  

  Commenter
  Chris
  
  Location
  
  Sydney
  
  Date and time
  
  October 03, 2013, 9:42AM

  
  
  • 
    

    
    

    Not to mention all the fake bids in the pre-open.

    
    

    
    

    Commenter
    geoff
    
    Location
    
    burraneer
    
    Date and time
    
    October 03, 2013, 9:49AM
    

  
  
  • 
    

    
    

    I agree the market needs a reality check, but there still seems to be a lack of any fear.

    
    

    
    

    Commenter
    buysell
    
    Location

    
    

    Date and time
    
    October 03, 2013, 10:07AM
    

  
  
  • 
    

    
    

    Perhaps that’s because the reality is the world economy is improving and we are about to go into a bull market……

    
    

    
    

    Commenter
    Life Is Good
    
    Location
    
    The Real World
    
    Date and time
    
    October 03, 2013, 10:53AM
    

  
  


• 
  

  
  

  While the rest of the OECD sinks, Australian banks will remain highly lucrative riding the back of the existing and ever expanding housing bubble. This of course is based on senseless over bidding of home values and impossibly high expectations that housing can continue to rise indefinitely.

  
  

  
  

  Commenter
  Liberator
  
  Location
  
  SEQLD
  
  Date and time
  
  October 03, 2013, 9:28AM

  
  
  • 
    

    
    

    This overbidding of house prices aided and abetted by the banks is setting the stage for a repeat of 1992 when ballooning bad debts on property, caused in turn by the “recession we had to have”, nearly toppled one of the 4 pillars. History keeps repeating because we never learn first, second or even third time around, thinking this time it’s different. The only difference is that it’s a different set of mug punters who get caught.

    
    

    
    

    Commenter
    mitch of ACT
    
    Location

    
    

    Date and time
    
    October 03, 2013, 9:57AM
    

  
  
  • 
    

    
    

    To all those who are predicting a housing collapse – if it happens, would you consider buying an investment property?

    
    

    
    

    Commenter
    Andrew137
    
    Location

    
    

    Date and time
    
    October 03, 2013, 10:09AM
    

  
  
  • 
    

    
    

    Yep, there’s a kind of “group think”, a collective insanity gripping the littlelandlords of Australia. Of course they never learn.

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 10:21AM
    

  
  
  • 
    

    
    

    The problem is… building a house is completely affordable in Australia and the costs of buying new home are at a complete disadvantage when you can pick up a well built 10yr+ old home for $50K less than new…

    
    

    The problem is.. the new home is stick frame with garbage range cheap finishes…

    
    

    
    

    Commenter
    Liberator
    
    Location
    
    SEQLD
    
    Date and time
    
    October 03, 2013, 11:05AM
    

  
  
  • 
    

    
    

    I’m confused.

    
    

    One day you bears tell me that house prices are diving everywhere. They are going up slower than inflation.

    
    

    The next we’re in a bubble and they are being bid up to quickly.

    
    

    Make your minds up chaps.

    
    

    
    

    Commenter
    Littlelandlord
    
    Location
    
    Average Town
    
    Date and time
    
    October 03, 2013, 12:02PM
    

  
  
  • 
    

    
    

    Allan can be the spokesperson for the lifelong littlerenters.

    
    

    
    

    Commenter
    Brian
    
    Location
    
    QLD
    
    Date and time
    
    October 03, 2013, 12:10PM
    

  
  
  • 
    

    
    

    Thanks for reading all my comments Brian. You first post and it’s about me. I’m flattered. Shucks….

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 12:44PM
    

  
  
  • 
    

    
    

    “The next we’re in a bubble”……..We’ve been in a bubble for ten years. Now it’s just getting beyond ridiculous. Time will show you that.

    
    

    
    

    Commenter
    JohnBB
    
    Location

    
    

    Date and time
    
    October 03, 2013, 12:55PM
    

  
  
  • 
    

    
    

    Littlelandlord – to help with your confusion. Prices SEQLD are still below 09/10 prices… 3-4 years of nothing growth. Just because a few foreigners buy up over priced Sydney property, does not mean the bulk of homes are not tanking…

    
    

    Building new in SEQLD is a sure way to lose $50K equity at day dot.

    
    

    Yes, Australia has a property bubble but the banks and Gov cannot do a thing about it. The current banking model and financial stability of the banks rely on ever increasing price growth AND people taking up ever increasing debt burdens.

    
    

    House of cards – kaboom. Don’t sneeze.

    
    

    
    

    Commenter
    Liberator
    
    Location
    
    SEQLD
    
    Date and time
    
    October 03, 2013, 1:19PM
    

  
  
  • 
    

    
    

    Thanks JohnBB.

    
    

    We’re also told how prices are dropping like stones elsewhere, particularly SE QLD.

    
    

    Can we all agree that the situation is bubble-like but it is regional??

    
    

    
    

    Commenter
    Allan’s
    
    Location
    
    landlord
    
    Date and time
    
    October 03, 2013, 1:20PM
    

  
  
  • 
    

    
    

    LOL landlord. If I was renting you couldn’t afford to be my landlord. Oh unless of course you’ve got 8 figures in the bank. Nope.

    
    

    
    

    Commenter
    Allan
    
    Location
    
    Prahran
    
    Date and time
    
    October 03, 2013, 1:54PM
    

  
  
  • 
    

    
    

    @Allan: “Can we all agree that the situation is bubble-like but it is regional??”

    
    

    Wow, a comment from you that is actually not at the extreme side of a debate.
    I think you have hit the nail on the head here. SEQLD certainly seems to be deflating already, Melbourne prices seem crazy on the face of it, compared to rental yields.
    Significant rental demand in Sydney is probably enough to support the current prices in many suburbs.

    
    

    
    

    Commenter
    Irish Phil
    
    Location

    
    

    Date and time
    
    October 03, 2013, 2:26PM
    

  
  
  • 
    

    
    

    Phil…that wasn’t Allan but his landlord. Allam would not agree to anything of the sort ;o)

    
    

    
    

    Commenter
    heybert
    
    Location
    
    Sesame Street
    
    Date and time
    
    October 03, 2013, 3:34PM
    

  
  



Comments are now closed





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