US bonds easing
11.23 am Trade war and fear of it was the story of the night after Trump's announcement of tariffs on steel and aluminium. It's all up in the air with nothing definite for a while and with a congressional election due in blue collar Pennsylvania it may well be that the whole shebang is toned down once that's over.
I take issue with the populism card because although tariffs are clearly inefficient try telling that to US workers who have been going backwards for decades while income inequality grows and trickle down economics has failed. Why not vote in your own self interest? And, of course, there's plenty of quiet protectionism from Asia and Europe that we don't seem to hear much about anymore.
I was interested to note that US interest rates eased quite agressively and since our market is full of bond proxies, that's quite a good thing. With that in mind, I'm focussed on defensives. I'm long QAN and TCL which are pretty flat and I have some NextDC too which are up on the day and may be ready to kick again.
My small cap book is down a little bit but BUB is holding up ok and I'm wondering whether milk powder is seen as a safe haven too. I may be overthinking it but I'm also pondering the idea that Australia will be a beneficiary of any trade war between the US and China.
11.55 am Overthinking it seems. QAN has just been hit a couple of percent and support has evaporated for Bubs. The ASX 200 is a little above its lows at 5930.
1.40 pm The index is still driving lower as the Asian markets are under heavy pressure. Transurban has held up well but QAN was hammered to to the mid 560s.
4.19 pm I got out of QAN on a blip up to 570 and held NXT and TCL longs as the market bounced from a low just above 5900 to close down 44 at 5929. I'm disappointed with QAN, I knew the swing was long in the tooth but I had an idea that it might touch 595-600 so I ignored the warning signs.
The small caps held quite well and the loss was marginal.
I take issue with the populism card because although tariffs are clearly inefficient try telling that to US workers who have been going backwards for decades while income inequality grows and trickle down economics has failed. Why not vote in your own self interest? And, of course, there's plenty of quiet protectionism from Asia and Europe that we don't seem to hear much about anymore.
I was interested to note that US interest rates eased quite agressively and since our market is full of bond proxies, that's quite a good thing. With that in mind, I'm focussed on defensives. I'm long QAN and TCL which are pretty flat and I have some NextDC too which are up on the day and may be ready to kick again.
11.55 am Overthinking it seems. QAN has just been hit a couple of percent and support has evaporated for Bubs. The ASX 200 is a little above its lows at 5930.
1.40 pm The index is still driving lower as the Asian markets are under heavy pressure. Transurban has held up well but QAN was hammered to to the mid 560s.
4.19 pm I got out of QAN on a blip up to 570 and held NXT and TCL longs as the market bounced from a low just above 5900 to close down 44 at 5929. I'm disappointed with QAN, I knew the swing was long in the tooth but I had an idea that it might touch 595-600 so I ignored the warning signs.
The small caps held quite well and the loss was marginal.
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