I can appreciate how stupid the title is but this is been a rough week here on the mountain.
Bloomberg has two articles, here and here, about what has been going on in Australia recently. Stocks are going up and the Aussie dollar has been getting stronger too. The ten year government bond is now yielding 5.26% after being as low as 5.07% a couple of weeks ago.
The first article talks about the bank stocks drawing a lot of interest because of the high dividends they all have. I have owned Australia and New Zealand Bank (ANZ) ADRs for clients for a couple of years. I think it is a good way to maintain exposure to the country. ANZ was one of my picks on Forbes on Fox in December.
About three weeks ago I personally bought iShares Australia (EWA) at $16.87. It has moved up more than I expected in such a short time. The ASX 200 is at an all time high intra-day today. Don't take this as my recommending anyone buy this one now. I felt the market was cheap but was showing strength when I bought, giving a good entry point for a long term hold but I have no feel for which direction the next 50 cents will be.
Wikinvest Wire
1 comments:
Roger, you've written about Australia quite a bit. Can you talk a little about your thought process for buying EWA, ie why you thought it was cheap then and showing strength? Thanks,
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