Daily Market Blog: The Ian Moir Effect
"The light brown is David Jones. That segment (David Jones) had a strong second half, sales up 10.7 percent (H2) in a weakish Australian consumer market. Inside of this period will be the deterioration of the Aussie Dollar (like the South African Rand, "commodity currencies" globally have been negatively impacted) and more importantly, the dilution by way of the rights issue done last year, when the company turned to their shareholders for 10 billion Rand. Remember that rights issue was done at 59.5 Rand a share, the stock closed last evening at 98.89 Rand. It was a good idea to follow your rights."
To market to market to buy a fat pig. I guess you must file that in the same drawer of dumbness. Stocks made an epic comeback last evening in the US session, enjoying the single best day for equity markets since 2011. Dumb. What changed? Did Starbucks sell more coffee to Stockbrokers (chief Howard Schultz told baristas in an email to be sensitive to Wall Streeters) or less, who knows?
I am not too sure that a market should go up 4 percent on any given day, bearing in mind that is around half a years worth of longer dated returns (sans dividends). Some reasons are attributed to a speech by a Fed member, Bill Dudley who suggested that a hike in September was "less compelling". Paul told me of a bunch of market nerds who have started a hashtag suggesting that the Fed just gets the first rate hike out of the way. In other words, to borrow the Nike line, just do it.