Australia’s Political Stocks Have Never Been Lower

Thank goodness that’s all over. Throughout the whole tiresome election sales pitch, we’ve purposefully refrained from making any comments on politics. But now that it’s all over for another three years, we’ll make a few.

Firstly, we hope we’re wrong, but we don’t remember a time when Australia’s political stocks have ever been lower. That’s not a comment on the new Coalition government; anything surely will be better than that dysfunctional group of power mongers called Labor.

Rather, it’s a comment on the choice that Australians have over who will lead the country. The thought of Tony Abbot leading his party to an easy election win would have seemed insane to both sides of politics just a few years ago.

But thanks to Labor’s complete ineptitude in running the country, that’s exactly what happened. It wasn’t so much that Abbot won the election, it was the Labor, and Rudd, lost it. Hence the strong rise in the vote of the minor parties, as many disaffected voters couldn’t bring themselves to vote Labor or Liberal.

This lack of major support for the Coalition means that the Greens and Labor will still hold the balance of power in the Senate, at least until June 30 next year.  So some of the Coalitions’ ‘repealing’ policies, like the abolition of the carbon tax, will have to wait.

We’re not surprised at the nation’s lack of enthusiasm for the major parties. We couldn’t bring ourselves to vote for anyone. For the first time ever, we walked into the polling booth, got our name ticked off, received the voting papers, then proceeded to neatly fold them up before putting them into the voting bins without making a mark on them.

We didn’t do so out of apathy. We did it out of disgust. If democracy is something to be respected, then you need to respect your vote. We didn’t know of anyone who deserved the respect for our vote.

Then again, we’re ideologically opposed to the whole process of politics. It’s an industry where people use taxpayer funds to try to impose their view of the world on everyone else. And then they borrow heavily against the future value of taxpayer funds to give things to special interest groups who supported them.


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Greg Canavan is a Contributing Editor at Markets & Money and Head of Research at Port Phillip Publishing. He advocates a counter-intuitive investment philosophy based on the old adage that ‘ignorance is bliss’. Greg says that investing in the ‘Information Age’ means you now have all the information you need. But is it really useful? Much of it is noise, and serves to confuse rather than inform investors. And, through the process of confirmation bias, you tend to sift the information that you agree with. As a result, you reinforce your biases. This gives you the impression that you know what is going on. But really, you don’t know. No one does. The world is far too complex to understand. When you accept this, your newfound ignorance becomes a formidable investment weapon. That’s because you’re not a slave to your emotions and biases. Greg puts this philosophy into action as the Editor of Crisis & Opportunity. He sees opportunities in crises. To find the opportunities, he uses a process called the ‘Fusion Method’, which combines charting analysis with more conventional valuation analysis. Charting is important because it contains no opinions or emotions. Combine that with traditional stock analysis, and you have a robust stock selection strategy. With Greg’s help, you can implement a long-term wealth-building strategy into your financial planning, be better prepared for the financial challenges ahead, and stop making the same mistakes that most private investors do every time they buy a stock. To find out more about Greg’s investing style and his financial worldview, take out a free subscription to Markets & Money here. And to discover more about Greg’s ‘ignorance is bliss’ investment strategy and the Fusion Method of investing, take out a 30-day trial to his value investing service Crisis & Opportunity here. Official websites and financial e-letters Greg writes for:


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