# Who benefits from inflation?



## moses (7 August 2007)

There seems to be an increasing groundswell of thought that we are in for a bout of inflation. As serious inflation has not been seen in Oz for at least 10 years or so, I thought it would be good to discuss the effects so that we can plan to benefit.

For example, if the price of gold sky-rockets, then holders of gold benefit. But surely the same applies to the holders of any form of property that does not wear out with time?

So...who benefits most from inflation, and who loses most? Is it better to be in debt or out of debt? etc


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## Shane Baker (7 August 2007)

Hi

I would suggest tangible assets if we are talking rising inflation as opposed to hyperinflation. People perceive that it will be definitely more expensive to buy in the future so they purchase today rather than delay. Cash loses value with inflation over time.

I feel that holding debt is a function of servicability. As an example I may have a personal mortgage and some investment property. If I can afford the rising interest costs (rising inflation provokes rising interest rate response from Central Banks), then I may choose to hold the debt based investment property as I may sell in the future for a much larger capital gain and perhaps freehold some other property as a result.Difficulties occur when servicability becomes an issue and people are forced to sell assets.

Hope this helps

Cheers

Shane


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## krisbarry (7 August 2007)

People with savings benefit eg Pensioners. As inflation rises so do interest rates.


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## Judd (7 August 2007)

Stop_the_clock said:


> People with savings benefit eg Pensioners. As inflation rises so do interest rates.




As does most other basket of goods so all that happens in your scenario is that they maintain parity.  Conversely, the Rule of 72 does to some extent negate that parity.  Thus, inflation is not necessarily of benefit to people with savings.

Anyway, moses, what inflation are you talking about?  Headline inflation?  Underlying inflation?  The Health sub-group of the CPI (which is beggars muddle as it doesn't measure true increases in actual costs but variations in health insurance premiums plus a few other bits and pieces?)


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## nioka (7 August 2007)

Stop_the_clock said:


> People with savings benefit eg Pensioners. As inflation rises so do interest rates.



That is so far off the mark it is easy to see that you are not a pensioner nor do you have cash savings invested. Interest after tax is about equal to inflation in my experience,unless you chase risky high interest offers.


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## Smurf1976 (7 August 2007)

Who benefits from inflation? Those who are net short cash and long something tangible, preferably without being exposed to varialble interest rates.


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## springhill (8 August 2007)

Surely a Government with a GST levied on the community benefits! Increased prices = increased taxes. Too simple a view maybe? Never claimed to be an economist!


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## Sprinter79 (8 August 2007)

One word: BANKS 



hahhahah


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## theasxgorilla (8 August 2007)

Sprinter79 said:


> One word: BANKS




Is this true?  I would think that banks fear inflation.  Those with debt can benefit...it evaporates away the real value of a loan.  Banks want to keep you as a customer.  If inflation takes off and wages go up too, then you can pay off your home loan faster.


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## wayneL (8 August 2007)

nioka said:


> *That is so far off the mark *it is easy to see that you are not a pensioner nor do you have cash savings invested. Interest after tax is about equal to inflation in my experience,unless you chase risky high interest offers.



Particularly when real inflation is manipulated down by a purposefully fraudulent statistical method. Like now.


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## KIWIKARLOS (8 August 2007)

If inflation goes up the aussie dollar goes down in respect to buying power. So even though we may start getting paid more things cost more the net effect shouldn't be close to zero. If inflation was let go we would all get paid $1000000 a year and a mars bar would cost $10. But if you lived in Euro zone you would come here with 5 Euro and have $5000000 Aussie dollars (maybe in zimbarbwi anyway) 

The problem would arise if price inflation went up and wage growth stagnated as is whats happening in the US. Prices go up and people can buy less.


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## explod (8 August 2007)

Sprinter79 said:


> One word: BANKS
> 
> 
> 
> hahhahah





Absolutely Sprinter, spot on,  have a read of the following

Home
The Secret World of Central Banks
Posted August 7th, 2007 by manystrom in Federal Reserve 
by Michael Nystrom, MBA
August 7, 2007

Today, all eyes were on the Federal Reserve: How it would respond to the recent turmoil in global financial markets? Would it lower rates, and if so, would it do any good?

By the time you read this, the Fed's decision - made in secret - will have already been announced. Hundreds of news articles and blogs will argue over its wording and meaning. Was it dovish or hawkish? Discussed ad nauseam will be: what the policy statement does or does not clarify, what it leaves room for in the future, what it means for the economy, housing, jobs, and the prospects for recession or recovery. 

What will not be discussed is the powerful role played by central banks themselves. 

Central Banks = Centralized Economic Planning
If you thought that centralized economic planning disappeared with the fall of the Berlin wall in 1989, think again. Eight times each year, a group of twelve men meet to make secret decisions that have a profound impact on the US and global economies. None of these men are elected. Their meetings are closed to the public. Even members of the US Congress and the Senate Banking and Finance Committees are barred from attending, or even knowing what is discussed. No detailed account of arguments or discussions is ever made public. Listen to Congressman Ron Paul on the secrecy of the Fed:




In some parts of the world, this might be called a cabal. Here it is called the Federal Reserve Open Market Committee (FOMC). Regardless of what you call it, it is profoundly unfair to the majority of Americans. Eight of the representatives at today's meeting - the Chairman and the Board of Governors - are political appointees of the President. All twelve men are bankers. Their secret decisions - made eight times each year - affect whether or not you can get a loan, what your payment will be, whether the economy booms or sinks into recession, and therefore whether or not you'll have a job.

What the Fed says and what it does are two different things. Today, with the Fed's stated "focus on inflation," I am reminded of Richard Russell's January 4, 2007 edition of his Dow Theory Letters, in which he had a short analysis of central banks. Mr. Russell 83 is years old and has been watching the market for well over fifty (50!) years. He's one wise & curious dude (the last two his own words) who's been writing non-stop since 1958. 

This is what Russell has to say about central banks in general:

CENTRAL BANKS - I get a kick out of all these central bank governors, both here and overseas, constantly warning us about the "terrible danger of inflation." What a bunch of snake-oil salesmen these guys are. It's the central banks themselves that are pumping out all that extra fiat money that is creating the inflation. It's like an AIDS carrier indulging in all the sex he can handle while simultaneously warning about the spread of the disease.

So what's it all about with these central bankers? Simple, they like their cushy jobs along with the perks, and the only thing they're worried about is that the world will get wise to the central bank/fiat money racket, and maybe kill the beast. In other words, the central banks are afraid that voters will finally get rid of the whole private money business along with its nonstop production of intrinsically worthless fiat money.

You see, a real headwind of inflation would anger the public, in which case a few intelligent journalists might start putting the blame where it belongs - on the central banks, not the least of which is our own Federal Reserve. No, too much inflation, surging inflation, would be dangerous - it might expose the Fed and the central bankers for what they are - engines of inflation. When you've got a great racket going, like taking control of a nation's money, you want to protect that racket. 

So its no wonder that the governors of our Federal Reserve take turns "warning us" about inflation while simultaneously telling us that "they'll keep everything under control." It's enough to cause this editor to "throw up his cookies." The curse of the Fed - it keeps going on and on and on. These freebooters know how to protect their racket. Create inflation, hide the evidence (as they did when they hid the figures on the broad M-3 money supply) and bravely act as our "protectors and saviors." Where was Congress when the Federal Reserve was first approved in 1913? Answer - At the same place it was when Congress handed over to President Bush the power to make war. End of that Russell rant. Whew! 

Richard Russell hits the nail right on the head. You won't hear about this in the mainstream media anytime soon. Unlike the MSM, Richard Russell is independent - beholden to no advertisers. He can say what he wants; he is free to speak the truth. 

Will the public ever wake up to what is going on with our money supply, and "finally get rid of the whole private money business along with its nonstop production of intrinsically worthless fiat money?" The first step towards that goal is awareness. 

Since the Fed is worried about excessive inflation - which it has been creating itself, perhaps it is time for it to create a little deflation, i.e. monetary destruction. By limiting the supply of credit, assets that rely on ever increasing amounts of credit creation begin to lose value or disappear altogether. For those of you who think that deflation is impossible, I direct you to one of the most profound comments ever to appear on Bull! Not bull: 

I am fascinated by the common perception that the Federal Reserve is a proven non-stop inflation machine. Inherently, the Federal Reserve uses inflation and deflation to whipsaw the average bystander out of his savings. I don't see how one economic machination is more favored over the other when the goal is to ensure that the public's savings ends up in the accounts of the shareholders of the Federal Reserve System. 

Think about it. And stay tuned.

The World's Debt Money System
Last week, in response to my article 'Global Liquidity Defined' I received a question on our debt money system: "I have heard that if all debts were repaid, there would be no "money" left. Is this true?" The short answer to this - thanks to the central bankers - is yes. The long answer will come later this week. Please sign up here to be notified when it is released.

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## Shane Baker (8 August 2007)

Reminds me of the great inflation joke about the guy who asked to be cryogenically frozen. Eventually science figured out a way to defrost him and bring him back to life .........fifty years later. He remembers that he had $10,000 in the bank so he rings up the bank and asks how much he has in his account now. They tell him that he has $1.7 trillion dollars in his account!!

He naturally is overjoyed until a voice comes over the line that says.....
to continue this call, please deposit $200 million.


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## SpotTheDog (13 September 2013)

It all depends on which side you’re coming from. If you think that banks and loan agencies would be the ones to benefit (and for those who borrow, it would seem so), they are actually impacted on a large scale. And just because an institution or individual has the cash flow, it doesn’t mean they won’t get burnt in the long term. The majority of earners put their money in banks, invest in assets or participate in some kind of contribution program. Initially it seems a logical and secure way to manage their money. But with rising inflation, many of these commodities lose value, mortgages are defaulted on and quick cash loans grow in demand. Both sides are affected more toward the negative.


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## jmoz (13 September 2013)

wayneL said:


> Particularly when real inflation is manipulated down by a purposefully fraudulent statistical method. Like now.




The RBA inflation rate never seems to really change. I've never really checked it regularly but has it ever been listed as outside their target range on their website? Seems ridiculous that through everything over the last few years it has stayed at ~2.5% when it feels like costs are going up massively.

Edit: found a chart on their website that shows otherwise. Range still looks smaller than I would have thought


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## DJG (14 September 2013)

Exchange-Traded Treasury Index Bonds - Tied to inflation.

http://www.asx.com.au/documents/pro...nt_Exchange-traded_Treasury_Indexed_Bonds.pdf


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## sydboy007 (14 September 2013)

jmoz said:


> The RBA inflation rate never seems to really change. I've never really checked it regularly but has it ever been listed as outside their target range on their website? Seems ridiculous that through everything over the last few years it has stayed at ~2.5% when it feels like costs are going up massively.
> 
> Edit: found a chart on their website that shows otherwise. Range still looks smaller than I would have thought




If one looks at the inflation mandate of the RBA then they've had a few periods ove rthe last decde where they've failed.  From their other mandate of full employment has been a lot more success.

If I have a choice of brief periods of higher inflation over higher unemployment I'll take the higher inflation as it's generally less damaging to the economy.

Still, i don't think anyone really wins from high inflation.  It distorts economic decisions, encourages consumption now rather than savings, but then it's better than deflation - just look at Japan to see what that's like.


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## Macro Polo (14 September 2013)

jmoz said:


> The RBA inflation rate never seems to really change. I've never really checked it regularly but has it ever been listed as outside their target range on their website? Seems ridiculous that through everything over the last few years it has stayed at ~2.5% when it feels like costs are going up massively.
> 
> Edit: found a chart on their website that shows otherwise. Range still looks smaller than I would have thought




Jmoz, it seems like we have inflation because domestic costs are rising well above the RBA mandate, at over 4%.

It's just that we have been protected by the strong AUD, which has absorbed tradables inflation to the point where it has been in deflation for a few years.

These two types of inflation balance out to result in the 2.4% we have now:




Should the RBA keep cutting rates, it's easy to imagine inflation occurring as low (negative real) rates combined with a lower exchange rate lead to continued non-tradables inflation and an end to tradables deflation.


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## cribmogul (1 November 2021)

4 mine:
If inflation increases nows the time to plan and implement strategies to take advantage. Get in now as momentum builds. What specific trades or ideas should benefit from increasing inflation?

Thoughts?

E.g. I will BTFD Asx200 CFDs at daily Boll Band extremes, and, I will swing trade it at Boll Band extremes as well. Day trading seems like a good strategy if volatility increases due to inflation


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## cribmogul (12 December 2021)

Adding another one to this list to buy - NSR (ASX)


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## cribmogul (25 January 2022)

Updating this thread:

As previously mentioned I think NSR will be a good buy BUT a caveat is it to buy it at a suitable price not indiscrimanently. With patience. The momentum of inflation will probably drop the prices of nearly all stocks - even good ones. After that the few winners should start separating themselves. And later after that it's probably time to look at deep value bargains.

*NSR is not currently cheap enough IMO. 
**BTFD and swing trading is going well as volatility has started to pickup.

Anyone have other ideas of what specific trades or ideas should benefit from increasing inflation?


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## divs4ever (25 January 2022)

cribmogul said:


> *NSR is not currently cheap enough IMO.



that has been my opinion of NSR as well ( but still worth watching )

 PLEASE NOTE  , this isn't the usual inflation we get , you have supply chain  breakages ( not that unusual  , for inflation ) BUT also insanely easy credit ( SO FAR  ) , so the system is awash with debt  , more bubbles than a crate of champagne  ( cryptos , real estate , share market , even used cars , and probably a dozen other things  , i haven't thought of )

now IF  there was a crisis coming ( and lordy they have been kicking the can down the road for years ) , the standard things  are FOOD ( COL , WOW , MTS , and actual food producers ) WATER  ( D2O , not very exciting but CCL was taken-over ) and SHELTER ( but property is in a bubble  , and credit MIGHT tighten ) so which way do you bet  ( governments will build more cheap housing  MAYBE TWD  and FWD  will get a break there  , and MAYBE ACU will get more surveying work  , but these IMO are all poor value , currently ) or the government will let the dice lay where they fall  ( more people living in their cars/caravans/tents etc ) ( so SUL , KMD , APE , PWR MIGHT get a boost )

 another option might be BSL ( folks building sheds and then living in them )

 now death  is always an option , i hold PFP but many prefer IVC

 both CCV and CCP ( are currently over-priced in my opinion )

 other 'weirdo' plays  , might include ART ( folks looking for any work or worker  they can ) CV1 and XF1 ( you have so many regulations hiring new staff )

 now traditionally  the West has found a BIG war to distract the world from all this hardship  so don't ignore ASB and BIS ( and maybe DOW ) if you think they will try this again 

DYOR  

 run the numbers over MTS first ( a bit of food retail , a bit of hardware )   and see if you like it  ( memo to self also , i should have been watching it today )


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## divs4ever (25 January 2022)

Goodman to benefit from flight to defensive assets: Macquarie​








						Goodman to benefit from flight to defensive assets: Macquarie
					

Current macro environment is expected to provide strong defensive tailwinds for Goodman Group




					www.marketindex.com.au
				




 DYOR 

 i hold MQG ( 'free-carried' ) but not GMG


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## qldfrog (25 January 2022)

who benefits from inflation?
The governments:
hidden tax increases, bracket creep and GST boost;
the other winner: fixed rate borrower: surprise Government again, and in a few other places, the house mortgagees..but not in Australia.
and people with stocks(warehouse stockpiles)..but stocks have long been gone
So in short, most are losers but not governments until people react and throw them out..
well that was the way it used to work but now, democracy is dead and people have lost power, FFS, people are stupidly and diligently recording their "I am here" QCode at every shop or mall/cafe/restaurant in Queensland with no official purpose even pretended


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## divs4ever (25 January 2022)

“The most terrifying words in the English language are: I'm from the government and I'm here to help.”​
― Ronald Reagan

 fact-check  = TRUE

 if you doubt me ,  enjoy the next 5 years of your life ( that is your government helping you )


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## cribmogul (26 January 2022)

Great ideas 👍
Im going to look at those

A company that sources its own materials, makes something with that, sets its own prices and doesn't have supply chain issues is in a good position to benefit.


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## sptrawler (26 January 2022)

cribmogul said:


> Great ideas 👍
> Im going to look at those
> 
> A company that sources its own materials, makes something with that, sets its own prices and doesn't have supply chain issues is in a good position to benefit.



Or sells something that people or companies have to buy.


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## Macquack (20 February 2022)

Sprinter79 said:


> One word: BANKS
> 
> 
> 
> hahhahah



I would like to throw in Real Estate Agents who make a killing on inflated property prices.

Also, tax accountants whose bills seem to be automatically indexed to the CPI.


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## cribmogul (7 March 2022)

_Ita vero _

prices are rising, we have lift-off

great work all following this thread were ahead of the curve. 

oil price $ spike pushing inflation momentum and providing benefits for those long oil and many other commodities. Stocks dropping but hopefully to rise eventually again with some value

Im continuing to buy aus200 indice cfds at Boll Band daily minimums - successfully continues. Also adapting to the falling market selling at daily MAverage has been successful 

What else is everyone winning on?


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## cribmogul (9 March 2022)

Adding another industry to this list that will likely benefit:

Commodity miners, producers, sellers.
BHP is first that comes to mind among others


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## Value Collector (9 March 2022)

cribmogul said:


> Adding another industry to this list that will likely benefit:
> 
> Commodity miners, producers, sellers.
> BHP is first that comes to mind among others



I would say commodity producers don’t benefit so much as their position is neutral to inflation.

Eg. The prices they sell their commodities for should track higher with inflation over time, but so will their costs, when those inflation adjusted profits flow in it will cause a capital gain, which in turn will be taxed.

So the biggest winner is the government, everyone is is hurt or neutral except for some rare cases.


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## sptrawler (9 March 2022)

From memory the banks do o.k with inflation, as interest rates go up, the margin they get on the loan increases, some people lock in their home loans but that usually means a bigger margin to start with.
Well that's my understanding.


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## Value Collector (9 March 2022)

sptrawler said:


> From memory the banks do o.k with inflation, as interest rates go up, the margin they get on the loan increases, some people lock in their home loans but that usually means a bigger margin to start with.
> Well that's my understanding.



Yep, but they also have alot of their own capital being eroded, I haven’t ever done the math though to figure out exactly what their net position is.


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## sptrawler (9 March 2022)

Value Collector said:


> Yep, but they also have alot of their own capital being eroded, I haven’t ever done the math though to figure out exactly what their net position is.



If there capital is out on loan and the rate of return(interest) is increasing with inflation, it would be some kind of hedge, as opposed to those who borrowed the money to purchase depreciating assets, the price they end up paying increases as the value of the object decreases.

Also they borrow money from the RBA for 0.1 % say and lend it at 3%, as inflation increases, the RBA lending rate goes up so does the rate the banks on lend the money at.
But at the same time the money they borrowed of the RBA at 0.1% doesn't change as far as I know, only new funds they borrow, therefore the rate of return on the original loan money keeps increasing. This in turn increases their profits and increases the tax they pay.
The rate they lend savers money at, is the difference between savings interest and loan interest.
Well that is my understanding, that is how the banks get so big, someone will correct me if I'm wrong.
Box: The Term Funding Facility​The Reserve Bank announced the Term Funding Facility (TFF) in March 2020 along with several other monetary policy measures designed to help lower funding costs in the Australian banking system.

The TFF made a large amount of funding available to banks at a very low interest rate for three years. Funding from the TFF was much cheaper for banks than other funding sources available at the time it was announced, and that remains true today. (See announcement of Term Funding Facility and the Governor's speech Responding to the Economic and Financial Impact of COVID-19).

The TFF is designed to lower banks' funding costs and in turn to reduce lending rates for borrowers. The TFF also creates an incentive for banks to lend to businesses (particularly small and medium-sized businesses). This is because banks can borrow extra funding under the TFF if they increase their lending to businesses: for every dollar of extra lending to small- or medium-sized businesses, banks can access five dollars of extra funding under the TFF (for large businesses, the amount is one dollar of extra funding).


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## cribmogul (26 April 2022)

Hows everyone's positions? hopefully in place or close to now, watching inflation, adding as needed...

I've been selling the German Dax lately with success. The macro picture in that region is uncertain, with stocks liking certainty there's been opportunity to profit. There still may be more opportunity..

Inflation continues higher, it often feeds on itself. 

Anyone else had some winners?


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## mullokintyre (27 April 2022)

sptrawler said:


> From memory the banks do o.k with inflation, as interest rates go up, the margin they get on the loan increases, some people lock in their home loans but that usually means a bigger margin to start with.
> Well that's my understanding.



Banks do ok no matter what happens.
He who sets the rules reaps the benefits.
Mick


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## cribmogul (7 June 2022)

Seems like a few of the American energy companies (and their shareholders) such as Chevron and Exxon Mobil could keep benefitting in the short term from higher commodity prices. Hard to know exactly how long they could because demand can decrease as new technologies and efficiencies develop as prices push higher. However politicians pushing climate change reform may cause some future under investment in new capacity by these energy companies. Excess capital makes its way somewhere, and this may be to company shareholders through good capital gains and dividends.

There could be some investment opportunities for short term traders...


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## cribmogul (8 June 2022)

cribmogul said:


> Seems like a few of the American energy companies (and their shareholders) such as Chevron and Exxon Mobil could keep benefitting in the short term from higher commodity prices. Hard to know exactly how long they could because demand can decrease as new technologies and efficiencies develop as prices push higher. However politicians pushing climate change reform may cause some future under investment in new capacity by these energy companies. Excess capital makes its way somewhere, and this may be to company shareholders through good capital gains and dividends.
> 
> There could be some investment opportunities for short term traders...



Ampol looks to be going well in Aus


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## divs4ever (8 June 2022)

inflation usually brings higher costs  , so keep an eye out for margin-squeezing   especially for wholesalers ( and importers ) and retailers  who will try to absorb SOME rises to attract extra sales


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## divs4ever (8 June 2022)

now  NORMALLY insurers  are thought to go well  on the logic of better ( interest-rate securities ) returns  BUT is this out-weighed this time by multiple fragile economies


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## Telamelo (8 June 2022)

mullokintyre said:


> Banks do ok no matter what happens.
> He who sets the rules reaps the benefits.
> Mick



After yesterday's interest rate rise.. the Big4 Banks share prices suffered today with Westpac tumbling -6.11% 

Seems like investor's now somewhat concerned that interest rate rises may squeeze/hinder bank profits going forward.


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## mullokintyre (8 June 2022)

Hopefully the share prices will fall further, and I will buy into them.
Historically , Banks do better as the interest rates go up and their margins increase.
I guess there is a whole generation of investors who have never been through an interest rate tightening cycle.
Mick


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## divs4ever (8 June 2022)

Telamelo said:


> After yesterday's interest rate rise.. the Big4 Banks share prices suffered today with Westpac tumbling -6.11%
> 
> Seems like investor's now somewhat concerned that interest rate rises may squeeze/hinder bank profits going forward.



 go back to the GFC   , the US wasn't doing too badly until AIG got into trouble  , why was AIG so pivotal ?

 AIG  was the major mortgage INSURER is the US so when the US is awash with NINJA loans are going uninsured ... ( lenders with toxic loans  get REALLY SCARED  )

as long as someone else picks up the toxic debt , the banks don't give a rat's ( unless there is a Royal Commission later )

 now also  house mortgages  tend to get bundled up in things  called RMBS ( Residential Mortgage Banked Securities  ) although the US also put lots of toxic loans into CDOs ( Collateralized Debt Securities ) and BOTH were rated AAA investment grade ( despite the toxic  contents )

 now for the ASX  maybe GMA  is worth watching , it could be the canary in the coal-mine


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## divs4ever (8 June 2022)

mullokintyre said:


> Hopefully the share prices will fall further, and I will buy into them.
> Historically , Banks do better as the interest rates go up and their margins increase.
> I guess there is a whole generation of investors who have never been through an interest rate tightening cycle.
> Mick



 am not a big fan of the BIG 4  , yes i might carefully buy more WBC  , but am more likely to nibble on the second tier players  ( BOQ  is currently lower than my av. SP , but hopefully BEN  will come down much lower as well ,  SUN , maybe not so enthusiastic  , but would hope for extra cheap MYS . )

 HOWEVER this might be a tightening cycle like no other ( that has come before )


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## mullokintyre (9 June 2022)

divs4ever said:


> am not a big fan of the BIG 4  , yes i might carefully buy more WBC  , but am more likely to nibble on the second tier players  ( BOQ  is currently lower than my av. SP , but hopefully BEN  will come down much lower as well ,  SUN , maybe not so enthusiastic  , but would hope for extra cheap MYS . )
> 
> HOWEVER this might be a tightening cycle like no other ( that has come before )



Its all about the risk/reward.
How risky are the big 4 banks compared to other sectors?
What  sort of return/reward can I expect to get from them compared to other sectors?
NAB under 27.50 , WBC under 20.50 , ANZ under 22.50 and CBA anywhere within a buck of 80 are where I will be entering.
Mick


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## divs4ever (9 June 2022)

i went for the lesser banks  mostly bought in 2011 and 2012   because i couldn't see a sensible path of growth  in the BIG 4  , now with the 'bail-in ' laws and other changes to banking ( like Basel III ) the risk for the lesser banks is higher  , but they still have room for sensible growth  ( although BOQ isn't doing such a great job of it )

 have an order in for WBC around $19.80  if i miss it i won't worry about it


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## divs4ever (9 June 2022)

considering the stress Credit Suisse  is in  which bank is 'safe '


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## mullokintyre (9 June 2022)

divs4ever said:


> considering the stress Credit Suisse  is in  which bank is 'safe '



I think our banks  have  marginally better oversight than the big international commercials.
The Aus government via the RBA will provide some measure of support  for our local banks.
Less risky from my perspective.
Mick


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