Rob Coyte's Blog

"So when Obama says that there are 'flickers of hope' in the economy is he referring to this share market action you're talking about? So it could be more than a quarter before we get 'good news'?"

"@Kayce Obama is actually referring to some of the economic data (house sales numbers, reduction in inventories, GDP etc) that is coming out in the sense that is not as bad as everyone thought. The share market does not have any economic significance other than that of a gauge of investor sentiment. As a consequence the share market has had a rally over the last month or so in anticipation of such information. Other important factors such as the thawing of credit markets is continuing which is giving confidence that the banks will start lending as they have done in the past and the world will keep spinning these are also actions which the share market will notice and provide them with increased confidence.

Importantly we don’t try to time markets over the short term and we certainly don’t pay too much credence to economists forecasts who are held in the same regard as weather men. You hear what they have to say but are then not surprised when they are wrong. What we do look for is the opportunity to buy good assets with a positive long term outlook at a very attractive valuation."

"Thanks Rob! Great insight that someone like me would never know!"