Eureka Correspondence

Seeing the light

After reading John Abernethy’s latest article, Seven stocks that are not so magnificent, I have to say I’m glad someone has seen the light. There are so many things that don’t really give one confidence in the market but once again it’s the spruikers who are winning.

We are all being told the world is recovering but really it is a thin veneer, while underneath the masses are worse off.

Well said John, I just hope people are listening.

JL

Wealthy superannuants

I am a self-funded retiree with around $2 million in super as well as some other investments.

I think much of the reporting on the previous Labor government is justified but I also think it’s important to remember that Labor, dysfunctional though it was, was also trying to deliver better funding for hospitals, schools, the disabled etc.

These issues require support and as a self-funded retiree I’m happy to pay 15% tax on earnings above $100,000. I can’t understand how some people think this is unfair or that superannuation is somehow not to be touched. It seriously irks me to see people with $2 million in their funds crying poor.

Name withheld

China Oh China

Alan’s musings on China in his Saturday briefing, Kohler’s Week: China Oh China, The Rise of the Machines, Australia Felix, Moving, Adam Carr, were very stimulating.

I’m sure subscribers will have heard of Robert Kuhn who has written How China’s Leaders Think: The Inside Story of China’s Reform and What This Means for the Future.

He has recently produced an interesting series on issues facing China.

His “edge” may be that he has great access to Chinese leaders and has recorded what they think.

My lay understanding of China is that its leaders have a much greater margin for error from the people in both making mistakes, and making major course corrections on the economy. The growing wealth of the middle class is a cause for aspiration among those who are not yet part of it. And Kuhn has detected correctly in my view that the Chinese are far more concerned about “China the State” being great once more, proud and strong, than they are concerned about democracy.

So I don’t think many huddling masses will be a bother, China’s pain threshold will always be higher than the West’s. A little short-term tribulation will be suffered in favour of long-term national glory and personal wealth.

l enjoy your work, and the Eureka report is helping me prepare for retirement.

John Menear

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