Just a repost of original which I canned as logic error discovered, cut and paste bit of doctoring and see below.
Yields definitely freaking the market out, put yourself in the average fundie’s position controlling say $1 billion in assets chasing 10% pa, a bank walks past and offers zero risk 5.5% on $200 million but can’t touch it for 12 mths, you would think about it for approx. 10 secs before asking the bank where do you want the 200 parked.
Coal intriguing, listening to the CEO of NHC during the week, he makes sense, my interpretation only of his thoughts below, obviously concerning price of coal and high quality coal assets.
If demand falls away you are left with a stranded asset of little value therefore banks have not been lending against that asset in expectation of falling demand, but after the banks financial constraints have limited future supply and demand does not fall away current assets will actually appreciate in value as no new coal production coming on line. He was referring to the overestimation of renewables taking up the baseload position and why there is the current scramble to shore up U supply.
Anyway, he is a coal guy so would expect him to say that though something for the forum to ponder, boys in the garage long BCB but 1st too admit not really investment grade although numbers pending in coming 4c will increase transparency, BCB one of only a very few coal companies with multiple broker coverage delivering a ‘strong buy’ consensus, most are hold at best, had a look a price chart for coal, looks like a rounding bot bot, I think the technical term which the TA texts use is ‘basing bottom of rounded appearance, ascending right cheek with clarity defined by a lack of skids”.
Seriously though, if humans believe we can fix climate change by everyone going into tosser mode and driving around in EV’s think again, we will have cleaner air in cities and that’s about it. To tackle CC on a 10 billion strong biomass planet we need systemic behavioral change across multiple levels of human activity, not just coal, next couple of decades going to be interesting.
Other than that not much going on, the yield situation means the boys sitting on cash with handful of open longs one being BBUS, still have no Li exposure although did see a bit on money flow into the majors Friday PM & LIT ETF green onite so maybe a missed op there, like everyone shortening trade cycles and if the market offers green the garage just grabs it. Still watching CLG at small end. If something happens and the bias goes back to several cash rate cuts pending then ignore above and carry on, market seems to be showing its strong teenage feminine side atm, having trouble holding an opinion for more than a 30min half life. (had the daughter and some of her mates in garage all week)
Won’t be posting much next few months, hound & I off west of the divide in the RV on behalf on this gov contract thingy, to be joined bit later down the track by the BH for a family holiday by the banks of the murray darling, trade well.
Swapped original vid for one below, brought to my attention by one the BH's mates this morning, hilarious, obviously the garage apologises to the woke community in advance.
