Conversation with Mr Market, page-2

It appears that themarket has put caution aside and just wants to keep going up at the moment. Thecurrent reason for the jump in values is the hope that the central banks willcut interest rate further. It is an interesting conundrum as the reason for ratecuts will be fear that the economy is not doing well and needs a stimulus whichmeans that the financial performance will likely take a hit on the other handthe value of any asset including stocks is the net present value of all itsfuture cash flow, so with the fall in the interest rate the NPV just becamehigher.

Ultimately resultswill matter - So whilst enjoying the run up it is time to be cautious.

Trade war between USand China can have a severe negative impact on Australia, it seems that themarket has forgotten about it. Can US really get China to back down and agreeto its demands or will they compromise?