Market Update March 2011

I have drafted at least 3 market updates since arriving back in Australia from North America this January and posted none.

The problem has been that the power shift and transformation process I keep referring to in previous market updates is happing at a very rapid rate.

This does give us all more to digest and ponder in order to form a view in relation to markets and investments.

One thing is a constant though, that is the growing seas of human beings to all share a finite amount resources / energy and commodities. It is on that basis I still maintain a very positive view and see many opportunities in investing selectively in equities within these sectors for now and in the days ahead.

I believe that the definition of economics as the ``study of scarcity`` will be the most appropriate as a dictionary reference in the days ahead too.

I have no real good news to report from my last trip to North America economically speaking and I once again was very happy to come home to Australia,`` natural disasters and all.

We were all lucky when the last big power shift from the British Empire to the American Empire took place. The two countries shared allot of common ground in ideology, religions and laws, this was a rare historical occurrence.

This big power shift happening now may not be so smooth and I hope that Asia`s desires to embrace ``free market capitalism`` help all parties to deal with the issues and upsets that are inevitable along the way. We will all find out sooner than later.

Property was still declining this year in the US and I think that if our property market in Australia can stay at our current levels we will be doing very well.

I believe property will take a lot more time to be positive again, here and in the US. Interest rates and cash in Australia are still low historically in respect of yield and look very poor when an increasing rate of inflation is factored in. (effective or real return).

Now, I am off to look at a few more things shifting/transforming and most likely see a bit more history being written……..``briskly``?

Take care & talk to you soon.