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Industry super valuations project artificial gains
24 November 2008, Australian Financial Review

In an article entitled 'Industry funds face attacks on unlisted valuations', the Australian Financial Review reported today that industry super fund values may take a slamming in the annual price updates. Up to half their portfolios are allegedly held in unlisted investmentments, which project artificial gain for investors.

Kinvale clients can rest assured that super monies invested through our organisation are in listed and, therefore, more regularly and accurately valued managed funds investments.

Read the full story (pdf)

Optimum currency growth for Kinvale clients
29 October 2008

Kinvale clients can be satisfied with results achieved in the currency sector over the years through Phil's extensive research. An article published by The Australian Financial Review on 28 October 2008 showed the highs and lows of the Australian currency in international markets between December 1983 and October 2008. In May 2001 Phil put a currency hedge on international funds and removed it in July/August 2007, timing in perfectly with market movements to gain optimum results for the period.
Image extract copyright The Australian Financial Review.

Railway projects to boost economic growth in China
25 October 2008

Read about how the Chinese government is helping its nation deal with the current financial crisis. Source: China Daily

ASEM starts with financial crisis as top agenda
24 October 2008

Chinese President Hu Jintao was quoted by China Daily as saying 'China's sound economic growth is in itself a major contribution to global financial stability and economic growth.' Read more.
Source: China Daily

Wisdom from philanthropist Warren Buffet
17 October 2008

Renowned philanthropist and Chief Executive of Berkshire Hathaway Inc Warren Buffet expressed his opinion on the state of the economy and why he thinks it's the climate for buying. Read the full story, which was published by the New York Times on 16 October 2008.

Special message of reassurance for Kinvale clients
Phil Moore, Saturday 11 October 2008

I do understand how distressing and worrying the current market volatility is. The media does not help at all. While the headlines are correct that Friday 10 October 2008 was the second biggest fall on record, there's a major difference with 1987, which is the volumes are very low and not a wholesale sell-off e.g. St George bank trades went for a couple of hundred shares each <$10,000. This says to me that DIY investors have run away from the market and sold at any price.

The market in Australia on Friday was pure blind panic without fundamental logic. The European markets were the same. The US had an extemely volatile session last night, closing down 1.2% after ranging between -7% and + 3% in one day.

The G7 met last night and President Bush gave an economic address to the nation. There is now a concerted and unified approach to the financial crisis by the entire developed (and developing) world to ensure that a recession is averted.

They need to have the financial system working again. At the moment the banks aren't lending to each other for fear they will not be repaid. This is the number one priority.

Six weeks ago at the Jackson Hall meeting, where all the world's central bankers met, there were two camps. One was concerned about inflation and wanting to put interest rates up while the other was concerned for economic growth and wanted to put interest rates down. There is now only one camp, which is why we're now seeing a coordinated global response to cutting rates.

The global economy WILL recover following interest rate cuts. You probably read that the IMF is forecasting Australian Growth to be 2.2% next year.  Lost in all the media frenzy was the fact that jobless claims in the US went down 20,000 last month. This proves that we are not in a 'great depression'.   

Note: The market today (Monday 13 October 2008) went up 5% on news that the European governments had reached an agreement to back up their banking system, which was exactly what was needed.

When fear comes to the fore
Thursday 9 October 2008

The New York Times published an interesting article today about the power of fear during global market volatility. Read the full story. As always, we encourage our clients to maintain composure and not be swayed by the media’s twist on what is traditionally ‘normal’ global economic behaviour over the long term.