up-trend is forming, page-20

re: up-trend is forming.. but note this..also tim An interesting conversation I thought I might share with you....

A conversation today regarding MIS schemes in general and GTP in particular.

Federal Government hates them. There is a growing realisation that the only attraction to investors is the upfront deduction and the linkage to any real belief by the investor that they will benefit down the track is either hopeful optimism or complete disregard.

For example - take the over subscribed Table Grape schemes.

In the Riverina this year growers were already facing the reality that Table Grapes are in oversupply (perhaps even more so than wine grapes where lakes of unsold quality wine are sloshing around threatening the future of some listed wine entities.)

Yet here are investors lining up to put their super into a scheme that is already known to be producing a product in oversupply.

How about Mangoes ?

The markets were choked with them also this summer.

Some punters are already starting to sit down and work out just how big the profit margins are that MIS schemes have been creaming off whilst investors have blindly grabbed the upfront deductions. The bad news for the schemes is that so have the key industry advisors AND the government.

Party is nearly over for retail MIS as we currently know it I suspect. What then ?

Just a thought.

Do your own dd for those companies as always.

Cheers,