,...............And, no, I don't own any discretionaries. Except for Wesfarmers, and I didn't want them to buy coles anyway. I also don't own any banks, and can't see any value there either.
In the last month though, I have bought BHP, WPL, UGL, LEI, MLE, PAG, ORI.
bhp, wpl, and ugl make sense.
lei : I thought might be a bit risky until I read up on their growing overseas operations, especially in Saudi. Nice diversification....
mle : can't understand that one TC. I wouldn't touch the donut boyz with a 10 foot pole.
pag : don't know enough about their experience in agriculture.
ori : should do better once they dump their consumer divisions in 09.
You must be unconcerned about a slowing down of Chindia if the US goes into a structural recession/depression.
ps, Oops, Wes and Coles aren't discretionary spending anyways.
yeah you threw me there.....
re WES, some might consider Target discretionary.....well compared to Aldi's ........
......................MLE. A property trust with not too much debt, lots of land and dreamworld as assets and a good yield.
that's a neat trick to pay out a higher div per share than earnings per share.
Yeah, if China and India tank, so does our whole economy, so there will be more to worry about than some share losses. If the resource boom ends, the Aussie dollar would go to below 60c, so I would do real well from farming at a less than 60c dollar.
true....our mining exports could slow significantly but never our agriculture, now that China has a stash of cash...presume they'll overtake Japan shortly as our major ag export destination.
See ya's.
I think Dan idea is very good.Dan Denning came up with a new indicator to track the credit worthiness of US t-bills. He calls it the bed spread "baseline emerging market spread" or BS for short
a short explanation extracted from here......
"[SIZE=-1]To get it, I established a spread between emerging market debt and U.S. government debt. If I’m right about the U.S. bond market losing its gold-standard reputation, the spread should converge over time. U.S. government bond yields will rise as the dollar falls. And emerging market debt yields will fall as it becomes comparatively less risky than dollar-denominated debt. "[/SIZE]
