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Today's quote:

Wednesday, June 16, 2021

Self-fulfilling prophecy?

 

Trading Central has detected a "Top Triangle" chart pattern formed on BHP Group Ltd (BHP:ASX). This bearish signal indicates that the stock price may fall from the close of 48.37 to the range of 43.80 - 44.70. The pattern formed over 21 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.

Tells Me: The price seems to have reached a top, showing signs of reversal as it has broken downward after a period of uncertainty or consolidation. A Top Triangle shows two converging trendlines as prices reach lower highs and higher (or stable) lows. Volume diminishes as the price swings back and forth between an increasingly narrow range reflecting uncertainty in the market direction. Then well before the triangle reaches its apex, the price breaks down below the lower trendline with a noticeable increase in volume, confirming this bearish pattern as a reversal of the prior uptrend.

This bearish pattern can be seen on the above chart and was detected by Trading Central proprietary pattern recognition technology."

Trading Central are an industry leader in automated interpretation of technical, fundamental and value-based analytics. Their interpretations often come true simply because the persons reading them believe they will and their resulting behaviours align to fulfill the interpretations.


Googlemap Riverbend

 

Almost finished but not quite!

 

Well, it could've been finished today but I stuffed it up! Mea culpa and all that! I ordered the ridge-capping 200mm too short by not allowing for the overhang of the battens. The new one won't be ready until Monday.

 

 

I'm back inside now, inches away from the blazing fireplace while Padma is still at the weekly Bitch & Stitch meeting in the local church hall. I've made myself a ginger & lemon tea and started on the tax returns - mine, Padma's, and the SMSF's - to beat the end-of-financial-year rush.


Googlemap Riverbend

 

P.S. If you're wondering, the four plants I placed on either side back and front are orange trumpet vines.

 

Tuesday, June 15, 2021

What's 55 metres long, 18 metres wide and anchored off "Riverbend"?

Click on image to enlarge

 

No, it's not my new super yacht but Polaris Marine Group's barge "PM South" which has just anchored off "Riverbend" in readiness for the work to begin on the new Nelligen bridge.

 

Click on image to enlarge / "Riverbend" is at the bottom and off the map

 

Life at "Riverbend" has suddenly became a whole lot more exciting!

 

"PM South" at night / The lights in the foreground are Riverbend's jetty and boathouse

 


Googlemap Riverbend

 

Monday, June 14, 2021

The Call of the Wet

 

An old friend from my days in Rabaul has just relocated to tropical Cairns. "Set high in Upper Mooroobool, this two storey home offers everything you could look for in a family home - with multiple living spaces, plenty of parking, sparkling pool and gorgeous city views", said the advertisement. The pool always gets them in!

"Weather beaut this time of year", he writes. And he adds, "Welcome at any time but no drop-ins as full most of the time." The house or him?

You know I'd sleep in the broom cupboard to be up there at this time of year, so don't tempt me! Congratulations and well done, Peter and Ida!


Googlemap Riverbend

 

Sunday, June 13, 2021

No more unfinished business


In the early 1980s, Paul Keating set out to reinvent the Australian economy. He floated the Australian dollar, liberated banking and finance from its regulatory shackles, and — most significantly — introduced a universal superannuation scheme. The results were astounding growth in the value of the national economy and in the personal wealth of ordinary Australians. Keating’s revolution was based on his insight that, by encouraging every citizen to save for retirement, a huge pool of investment capital would be created that would help enrich the nation. But the fulfillment of his vision was denied by his political opponents after the Australian people voted Keating out in 1996.

 

Even if you are like me a rusted-on Liberal voter, you will, after reading this book, take your hat off to Keating's genius which perceived a complex mix of politics, economics, market initiatives, and social policy as an interactive combination that formed an organic whole.

Keating was instrumental in floating the dollar in 1983, then in 1987 he introduced franking credits - also known as dividend imputation credits, and in 1992 he introduced the compulsory employer superannuation contribution scheme. Australia was a "Banana Republic" no more!

The floating of the dollar hurt me personally, as I had insisted that my then Saudi masters pay me in Australian dollars which suddenly dropped some twenty percent to eventually stabilise at around 77 US cents.

However, I - and millions of others who had invested in the Australian sharemarket to provide for our own retirement - benefitted hugely from Paul Keating's introduction of dividend imputation. Before 1987, dividends had been taxed twice: first at the corporate tax level and second at the income tax level. The government was basically double-dipping. Keating's reform allowed the corporate tax already paid on those dividends to be offset against an individual taxpayer's other taxes.

But things were to get even better: in 2001, the Howard government extended the system to shareholders who were not actually paying any tax, which meant that even if you were paying no tax ... you'd get that tax credit paid out to you - basically a cheque from the government.

The employer compulsory super never affected me as I had become self-employed shortly after my return to Australia in 1985; however, we were allowed to set up our own self-managed superannuation funds in which income was taxed at the much lower flat rate of fifteen percent.

Even the most mathematically-challenged person can see that paying 15% tax on dividend income which has already been tax at corporate level at 30% results in a huge tax refund. But wait, there's more: when you turn 65 and start your pension, all earnings are TAX-FREE and the full amount of the corporate tax of 30% becomes refundable!

Paul Keating has done it for me. No more unfinished business!


Googlemap Riverbend