Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The market disconnect from the economy is no surprise. If I don’t understand it, I generally stay away from it and right know the extremities suggest irrationality. I remained invested through the crisis and will continue to do so but the market looks increasingly expensive so I’m not committing any more funds.
Normally, I’m not at all nervous and invest when others flee based on fundamentals. Now I’m waiting to see earnings and the economic impact. And sure, I’ve lost some opportunities but no matter, they’ll come again.
Now that’s a great idea PGee, buying our bank.
Like many of you, I’m baffled that this bank and others are priced for ruin. I don’t accept that premise and agree that this has been a day traders paradise for longer than I care to remember. And the US is even more concerning when it comes to this virus and its impact. The market is priced for earnings that simply will not happen.
My time horizon is 15 years. I believe we will beat this bastard virus but not before we take a hammering economically and to our way of life. It will take time to mend but mend we will and a robust banking sector is critical to the proper functioning of an economy. And it’s likely the only way we will survive is to print money like never before. There won’t be debt to pay back, it will simply be buried in some bond that never gets repaid. Nobody will be able to afford the cost of paying back the money we’re spending to keep our business economies in this coma.
I’m all for surviving and making sure we’ve something worth surviving for by way of our way of life.
In the meanwhile, I’ve no expectations for this or any other share.
Hang tight and stuff them away. I also have them since 2008 and bought them for 2028 so I guess I’ll hold true and wait until then. Don’t get me wrong, I’m as gutted as anyone that I didn’t sell when I had the chance but I’ve sold nothing else either though they’re still in the green.
It’s going to be an interesting journey. Heaven forbid, I’m buying more.
Well said Torquay, it makes us all feel very proud that our great people, many of whom had to emigrated, have answered our country's call. Something wonderfully uplifting during these difficult days. Stay safe and well.
You raise a very good point John and I think that’s exactly what’s coming, a global printing money explosion with the debt ultimately written off when we get back on our feet. Nothing else will work. The question is do we have the joined up thinking to make it happen.
At these levels, averaging in over the next number of months seems the only way to go given the volatility and no end in sight to the Virus.
That is simply beyond belief. He has told the American people this evening 'Relax, we're doing great, all will passim all will pass'. Let's hope whomever finds a vaccine has the moral integrity to understand the value of the common wealth instead of personal wealth. Somehow, I have faith that the many brilliant minds working on this possible cure for humanity will do the right thing.
It's hard to see how the markets can remain open in such challenging circumstances.
I too share your worry for SME’s. Fear is driving a hoard mentality that includes cash and not spending. An auto style bailout will be needed for travel related companies including airlines. And governments will need to take strong action to prevent major job losses. That’s a huge shift from where we are right now. I’m by nature an optimist but with idiots on both sides of our Island, I fear for the short term.
The truly frightening aspect of the US is their complete unpreparedness for the impact of this virus that has ravaged all before it. And while the fear impact may have spooked the markets, what happens when the virus starts attacking people in a borderless population of 300m +. I don't see any leadership and if we look at the numbers, the markets truly started screeching when the oil war started. We won't likely see a bottom until the impact of the virus is known. These rallies have all the appearance of stoke it and sell.
I shouldn’t be attempting sarcasm late at night. On the virus, that’s been exported into America which is why he needs more walls.
With markets in total panic, due in large part to lack lustre monetary intervention, the last remaining lever is fiscal intervention. As we all know, The turnip loves stocks and has taken the credit for all the gains under his genius leadership. Markets gained 61% since he entered office and such has been his masterful management of the Coronavirus crisis, gains are now down to 11% and falling like a rock.
He will now act irrationally and try to put a floor on it. And when he does ...... he’s figuring it out now as he watches Fox, the markets will go green and he will be one our centuries greatest financial geniuses.
Yes, you can see where this is going
What an absolute moron. The idiocy from that White House beggars belief. We need the adults to start making decisions that calm people, not ramp up the hysteria and seek to blame everyone else.
I share your pain Torquay, love your posts and know the torment. At present prices that even a director can’t ignore, you’re not done yet. Take the long road and it may well have been worth the potholes.
Fontenoy,
I have a perspective on this share that defies my normal sensibilities and aversion to market gyrations. I bought these nearly 10 years ago with a 20 year timeline. And through thick and thin, I have never sold a share. And yes, when Wilbur bailed so could I, and we, and many more. But I don’t watch share prices daily because I have a job, a family, a dog and a life. Better still, I have no way of knowing the top or the bottom of the market. My timeline is 10 years from now, my price point just under 4 euro’s after the consolidation and I have quite a few.
The journey has been awful, often defying logic and sometimes alarming. A month is a short time and yet we see what’s happened. And it’s everywhere and unrelenting.
So I’m with you in spirit and at present prices by any metric, it’s a steal. Low interest rates are another headwind but ultimately I believe that Ireland will do well, our economy will grow and this bank will play a part in fueling it. Maybe I’m wrong and a total buffoon but maybe I’m right and we'll have our day and a drink to celebrate.
In the meanwhile, let’s do a bit of living ....
I would certainly agree that she and all directors should own shareholding’s in the Company.
Under no circumstances can she be blamed for the external factors that have contributed to the destruction of value in this share price.
We now have the worst form of virus, fear and irrationality, destroying value indiscriminately. We have a business here that despite a challenging environment produces lots of profits. Yes, it should and could be more. There’s no basis in performance to suggest it’s worth 50% less than it was a month ago.
The Oil spat between Putin and Salmon will crucify fracking in the US. In fact, you'd wonder if that's Putin true target given that the Saudi's do whatever the US tell them. So we're like to see panic selling later today and that will provide even better opportunities for those with a long-term horizon. And if those of us here, long suffering and frustrated, believe that this is fundamentally a good business in a booming economy then opportunity beckons. European banks, to compete properly and make profits, will have to consolidate and cut costs. And ironically, the Fed should have increased interest rates to signal faith in the economy.
Irrational behaviour driven by fear has everything in free fall. And it’s indiscriminate. The value available, if one takes a long-term view, is transformational. As a society, we will conquer this adversity as we always do. When, who knows but most likely sooner than we think. And then all of these assets will climb like rocket fuel. As wild as the retreat has been, it’s likely the recovery will be even more rapid.
It’s tough to be brave when everything appears to be burning all around us but staying the course is the prudent course of action. Unless, that is, the world is going to end in which case it won’t matter.