1. How do I buy Australian stocks?
Virtually any full-service broker in the US can arrange for you to purchase Australian stocks, but commissions are higher.
Interactive Brokers, Fidelity, Tradestation, TDWaterhouse and ETrade Australia
are a few of the online brokerage accounts that are simple to open and that offer software platforms that are easy to use, providing you with the flexibility of being able to trade Australian stock market hours as well as being the cheapest method of buying stocks on the Australian Securities Exchange (ASX); such software platforms also enable you to trade options on Australian stocks, should you be so inclined.
2. Do you offer Trading Advice?
We are not licensed financial consultants and would be loathe to provide such advice, especially in view of how much time we spend on the road.
I urge caution: I simply do not believe the problems brought to light by the global financial crisis have been solved—merely papered over (literally) temporarily.
That being said, we find ourselves in the hateful situation of having little choice but to speculate or to watch our hard-earned savings dissolve in a zero interest rate environment compounded by runaway reflation efforts.
We view Australian Precious and Specialty Metals as a long term trend that the majority of market participants either fail to recognize or lack the gumption to go out and find ways to invest in; should central bank reflation efforts succeed and competition for these metals heat up, prices will explode.
Consequently the approach we have implemented with our little fund is as follows:
3. How will the Mineral Resources Rent Tax (MRRT), which is the successor to the Resource Super Profits Tax (RSPT) introduced in May 2010, affect our circumnavigation of Australia:
- for stocks recommended in our Investment Reports, we will employ a simple buy and hold approach, which we protect with stop losses;
- for stocks we recommend in our Speculative Briefs, we will either buy and hold with stops as above, or we will buy a core position and trade around it, also protecting the position with stop losses; which method we employ will reflect the company in question within the context of our take on the overall markets;
- however, and this is critical, the largest single take-away from our little fund’s under-performance since the advent of the global financial crisis is the direct result of my not acting on my gut instinct in early July 2008: we were significantly out-performing both the majority of our peers and the overall market, but instead of going into cash as my instincts were telling me, and as I mentioned in a conference call with my partners, I pressed our bets—and we paid heavily for my mistake. This will not happen again: if I feel that things are going south, I will exit our positions. I will try to let sponsors and annual subscribers know what I am doing, but because of circumstances and where I may be at the time, I cannot guarantee how timely such notification may be.
The short answer is that the leftist RSPT has been scrapped entirely and replaced by the Labour Party with the face-saving MRRT, which applies solely to iron, coal, coalbed methane and on- and offshore oil & gas projects; consequently it will have no effect on the companies and projects we are investigating, and we will proceed with our boots-on-the-ground survey of Australian precious and specialty metals as planned.
More information is available on the “Radio Segments & Interviews
” tab on our homepage.
However, until the freeze on project funding thaws, as we anticipate it will later in the year, we have decided to tighten our screening criteria to exclude any project that is not fully funded at this time. Although exceptions may arise in the Speculative Brief category, we will not recommend any company as an Investment Report unless they are fully funded--or have arranged financing.
We will re-evaluate our position in this regard after the federal elections, which we expect to be called for August 2010, when the matter will be debated in Parliament; the conservative Liberal Party has vowed to make the tax the fulcrum upon which the election will pivot, not least because they oppose the precedent of singling out specific industries for increased taxation as the reward for success.
If you have any questions, comments, suggestions, or would simply care to share some feedback regarding our service, please do not hesitate to contact us.
The Emerging Trends Report
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