Chill Out
November 25th 2006 03:57
The week ended with a dip for the market due to lack of overseas lead, as the US markets were closed for Thanksgiving, and the ASX S&P 200 benchmark index closed 33 points or 0.2% lower to 5453.6 points. However, the Portfolio 1.5 - EW* went salmon and contrasted the market by posting a gain of 1.23% to a total closing value of $55,969. Profits, after first transaction cost round, stands at $12,922 or a gain of $517 from previous closing. The portfolio return is at 32.89% as of Friday, 24th November, 2006.
The frenzy of private equity takeovers of Australian flagship companies took an irrational twist as rumours of Foster's being approached by the world's largest brewer, InBev, were swiftly incorporated into the market and Foster's shareprice were pushed way out of fundamentals that it attracted the attention of ASIC seeking an explanation from Foster's for an apparent unjustified shareprice surge. Foster's denied the takeover claim and insisted that they were in the dark about the surge.
The Foster's events highlight a case of investors's sentiments went wild taking any sort of information, facts or rumours, into the market and push shareprices to levels unwarrated for. Everyone wants to make a profit, thats for sure, and riding on the current private equity wave, any apparent waves, based on shaky beliefs, were (imaginary) ride upon, even though the water may be still. Irrationality at play, afterall we are just humans, so this beg the question of countless times, is the market informationally efficient? It could be really efficient if investors are chilled out and take things calmly and evaluate rationally. Certainly, easy to say.
On a lighter note, Melbourne's broadsheet, The Age, carried a piece by Marcus Padley of Marcus Today, about day trading with an analogy of one night stand, err, no, its one day stand. A good weekend read here.
*Disclosure
NOT SPECIFIC INVESTMENT ADVICE
This information has been prepared for distribution over the internet and without taking into account the investment objectives, financial situation and particular needs of any particular person.
The blogger makes no recommendations as to the merits of any investment opportunity referred to in its website. It is advisable to obtain specific investment advice before making anyinvestment decisions relying on the information provided. While the information available in this publication is obtained from sources believed to be reliable, the blogger gives no assurances or guarantees that the information is accurate, complete or current.
The information is provided for informational purposes only and not intended to constitute legal, financial or professional advice. It has no regard to the investment objectives or circumstances (financial or otherwise) of particular recipients, and is not an exhaustive outline of available investment opportunities.
Appropriate professional advice should be obtained prior to acting on any information contained in this publication. The blogger will not be liable for any loss or damage incurred by any person directly or indirectly as a result of reliance on the information contained in this publication.
PAST RESULTS
Any past results shown or mentioned in any of our reports or web pages do not guarantee future performance.
ACCURACY OF DATA
Whilst all information on this site is believed to be accurate, we take no responsibility and give no assurances that it is accurate. We advise that you to double check any
data before acting upon this information.
The winner stocks are highlighted in yellow.
The frenzy of private equity takeovers of Australian flagship companies took an irrational twist as rumours of Foster's being approached by the world's largest brewer, InBev, were swiftly incorporated into the market and Foster's shareprice were pushed way out of fundamentals that it attracted the attention of ASIC seeking an explanation from Foster's for an apparent unjustified shareprice surge. Foster's denied the takeover claim and insisted that they were in the dark about the surge.
The Foster's events highlight a case of investors's sentiments went wild taking any sort of information, facts or rumours, into the market and push shareprices to levels unwarrated for. Everyone wants to make a profit, thats for sure, and riding on the current private equity wave, any apparent waves, based on shaky beliefs, were (imaginary) ride upon, even though the water may be still. Irrationality at play, afterall we are just humans, so this beg the question of countless times, is the market informationally efficient? It could be really efficient if investors are chilled out and take things calmly and evaluate rationally. Certainly, easy to say.
On a lighter note, Melbourne's broadsheet, The Age, carried a piece by Marcus Padley of Marcus Today, about day trading with an analogy of one night stand, err, no, its one day stand. A good weekend read here.
*Disclosure
NOT SPECIFIC INVESTMENT ADVICE
This information has been prepared for distribution over the internet and without taking into account the investment objectives, financial situation and particular needs of any particular person.
The blogger makes no recommendations as to the merits of any investment opportunity referred to in its website. It is advisable to obtain specific investment advice before making anyinvestment decisions relying on the information provided. While the information available in this publication is obtained from sources believed to be reliable, the blogger gives no assurances or guarantees that the information is accurate, complete or current.
The information is provided for informational purposes only and not intended to constitute legal, financial or professional advice. It has no regard to the investment objectives or circumstances (financial or otherwise) of particular recipients, and is not an exhaustive outline of available investment opportunities.
Appropriate professional advice should be obtained prior to acting on any information contained in this publication. The blogger will not be liable for any loss or damage incurred by any person directly or indirectly as a result of reliance on the information contained in this publication.
PAST RESULTS
Any past results shown or mentioned in any of our reports or web pages do not guarantee future performance.
ACCURACY OF DATA
Whilst all information on this site is believed to be accurate, we take no responsibility and give no assurances that it is accurate. We advise that you to double check any
data before acting upon this information.
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