Daily Archives: 23.09.10

Oliver's Insights – Lessons for US shares today from Australia in the early 1990s

This note compares the experience in the US today with that in Australia in the early 1990s when it was recovering from a similar financial crisis and major recession. The key points are as follows: – Shares normally go through a tough patch in the second year following a bear market low. This can reflect…

Oliver's Insights – Are shares good value and what about bank deposits?

This note looks at whether shares are expensive or cheap and how they compare to alternatives such as government bonds and Australian bank term deposits. The key points are as follows: – Shares are cheap using forward pricing to earnings ratios and when comparing the level of the dividend yield to the bond yield. Thanks…