What are we buying on Monday?

[UMike]

Not the bottom. Got alotta Mondays to go till I get back in.

 

[peter2]

US VIX is getting up there. I'll be starting a short position soon knowing that it can go higher.

 

[frugal.rock]

Not the bottom. Got alotta Mondays to go till I get back in.

I agree. It's going to be long and drawn out with lots of volatility.
The chart for the asx 200 today shows the market just getting slapped down again at every attempt of a slowdown, except for late lunch rally.

F.Rock

 

[frugal.rock]

US VIX is getting up there. I'll be starting a short position soon knowing that it can go higher.

View attachment 101157

It think it looks good for a long position whilst your waiting for your short position?
From your chart, it's obviously a run to cover index, thus the thought.
The panic is only just starting to get into full swing...!
Hope the trade goes well, hope to hear how it pans out.
Am hoping for a rally tomorrow, but not holding my breath.

F.Rock

 

[moXJO]

Stimulus will start this week....

 

[qldfrog]

Stimulus will start this week....

Sadly i think we have to say:
And?
Is the stimulus going to bring more students or tourists here?
Are you going to take the plane or. Go to a restaurant?
The worthwhile stimulus would be to convert concert halls and sport venue in ICU..but i bet all respirators parts are locked in China..
Will see..we will need to help some business survive etc
But i doubt it should be enough to support the market

 

[Logique]

The stimulus suggestion from Adam Creighton on Twitter is worth thinking about, it would certainly put more money in people's pockets. As a temporary response only:

"The best possible stimulus would be suspension of mandatory superannuation contributions, supercharging take-home pay by around 10 per cent and avoiding the waste that accompanies government spending."
Adam Creighton
@Adam_Creighton ·18h

 

[basilio]

The stimulus suggestion from Adam Creighton on Twitter is worth thinking about, it would certainly put more money in people's pockets. As a temporary response only:

"The best possible stimulus would be suspension of mandatory superannuation contributions, supercharging take-home pay by around 10 per cent and avoiding the waste that accompanies government spending."
Adam Creighton
@Adam_Creighton ·18h

Really ? Totally contradictory and quite nonsensical.

One might argue for temporarily diverting super contributions to wages. But wait a minute if that happened a significant proportion would end up as tax ! Isn't the employer super contribution effectively post tax ? And the super funds will have enough problems dealing with the decline in the share market let along a stop on super contribution input.

And then "avoiding the waste that accompanies government spending ". Where does that come from ? The super funds have nothing to do with government spending. On top of that everyone is now demanding government injection of funds to save businesses, people and the public health system that is the final bastion protecting us from this virus.

Maybe he misspoke but this is far from his finest tweet.

 

[basilio]

Ok perhaps Adam Creighton should have put a full stop after his statement about diverting super to current pay. THEN he could make the separate still nonsensical comment about avoiding the waste in government spending.

Still think both these ideas are wrong headed and miss the urgent need to stabilise and support people and businesses through these challenging times.

 

[Bill M]

Don't tinker with Super. All of this years contributions are going to be buying shares and REIT's at low entry prices building a sound foundation for future growth and dividend payments. I would rather be buying units now at a 25% + discount than the silly highs we recently got too. If anything, if I was still working I would increase contributions not stop them.

 

[CBerg]

The stimulus suggestion from Adam Creighton on Twitter is worth thinking about, it would certainly put more money in people's pockets. As a temporary response only:

"The best possible stimulus would be suspension of mandatory superannuation contributions, supercharging take-home pay by around 10 per cent and avoiding the waste that accompanies government spending."
Adam Creighton
@Adam_Creighton ·18h

Typically super is not paid into a super fund on a payday, it usually happens at month end(if you're lucky) or end of quarter.

Payroll can be hard enough as I explained in the thread about underpaid staff, making said suggestion sounds simple on the surface but it would hard for most businesses to implement in a timely fashion which I think is what the stimulus would be trying to achieve.

 

[wayneL]

Stimulus, even if necessary (and I am left thinking about the term "moral hazard" once again) is coming way too early in my opinion. This is a government in panic mode.

There are a fair few more shoes to drop yet and if I were in government I would be sitting back and keeping my powder dry.

As such it is perpetuating and exacerbating the problem.

 

[Dona Ferentes]

FOMO is back, at least short term

ASX200 this morning. 5750 to 5550 and back

 

[CBerg]

Stimulus, even if necessary (and I am left thinking about the term "moral hazard" once again) is coming way too early in my opinion. This is a government in panic mode.

There are a fair few more shoes to drop yet and if I were in government I would be sitting back and keeping my powder dry.

As such it is perpetuating and exacerbating the problem.

I think a big problem is we having middle management running the show when you need a team of leaders, applies to both sides not just the government.

They manage the news cycle & deal with peoples expectations in the moment without any real plan for what they want to have happened in 3-5 years time, let alone where they think we should be aiming for in 10-20 years.

 

[sptrawler]

Stimulus, even if necessary (and I am left thinking about the term "moral hazard" once again) is coming way too early in my opinion. This is a government in panic mode.

There are a fair few more shoes to drop yet and if I were in government I would be sitting back and keeping my powder dry.

As such it is perpetuating and exacerbating the problem.

It depends on how they spend it IMO, if it has long term benefits for the Australian public fine, if it is just another throw it out of the window plan that we have to carry ad infinitum .

 

[sptrawler]

I think a big problem is we having middle management running the show when you need a team of leaders, applies to both sides not just the government.

They manage the news cycle & deal with peoples expectations in the moment without any real plan for what they want to have happened in 3-5 years time, let alone where they think we should be aiming for in 10-20 years.

I agree with you, after the GFC it should have been a wake up call, that events out of the ordinary happen and there should be a list of stimulus initiatives drawn up ready to roll out.
Not obviously the logistics, stores etc, but a comprehensive plan that can be set in motion, that gives and orderly path to follow, be that regarding water infrastructure, transport infrastructure, health or power infrastructure.
Something like a wish list, that can be activated and fast tracked in case of an emergency. Not only would it help the economy, it would give confidence to the population, that someone is actually pro active, rather than re active.

 

[basilio]

I agree with you, after the GFC it should have been a wake up call, that events out of the ordinary happen and there should be a list of stimulus initiatives drawn up ready to roll out.
Not obviously the logistics, stores etc, but a comprehensive plan that can be set in motion, that gives and orderly path to follow, be that regarding water infrastructure, transport infrastructure, health or power infrastructure.
Something like a wish list, that can be activated and fast tracked in case of an emergency. Not only would it help the economy, it would give confidence to the population, that someone is actually pro active, rather than re active.

Are you aware that in fact Treasury did have the "break open in disaster" plans ready for the GFC ? The plans always had to be easy to implement, quick, relatively simple and scalable. There wasn't much point in starting project with long lead times. They also needed to offer real ongoing value to the community.

That was the school halls project and others.

https://treasury.gov.au/speech/australias-response-to-the-global-financial-crisis

 

[sptrawler]

Are you aware that in fact Treasury did have the "break open in disaster" plans ready for the GFC ? The plans always had to be easy to implement, quick, relatively simple and scalable. There wasn't much point in starting project with long lead times. They also needed to offer real ongoing value to the community.

That was the school halls project and others.

https://treasury.gov.au/speech/australias-response-to-the-global-financial-crisis

Well if that was a trail run, one hopes they have improved with what they put behind the 'break glass', this time.
You never know Bas, it might be free house batteries for all.

 

[basilio]

Probably worth reading the Treasury report to understand their thinking and the outcomes they achieved.
Australia manged to avoid prolonged recession and the worst fallout from the GFC.

 

[wayneL]

Probably worth reading the Treasury report to understand their thinking and the outcomes they achieved.
Australia manged to avoid prolonged recession and the worst fallout from the GFC.

I think the minerals supercycle saved us more than pink bats and a $900 cheque, a great deal of which probably ended up in the black and deep black economy.

This time I think it is going to be p1ssing into the wind.