Friday is the day that I always buy the AFR and take the time to digest it. The AFR is primarily a financial newspaper but, through the finance lens you get many interesting articles. Some of the articles that caught my attention today were:
One for the US
This was an article which told that, sometime this weekend or early next week, the US population will crack the 300 million mark. It discussed some of the trends that have helped accelerate US population growth towards this milestone - such as immigration. The article also highlighted the fact that immigrants such as Hispanic etc are starting to gain a much more influential role at the head of US business and politics.
Track the US and World population growth here.
Day Traders
Day traders have had a significant in the US equity markets for decades but, in Australia it is a relatively new phenomenon - mostly taking off after the advent of online trading. Today's AFR cites that there are now 20,000 day traders active in the Australian market, "each with access to at least $50,000 credit".
This $1 billion in capital tends to move very quickly and, as you'd expect, tends to move in a herd-like manner. The crux of this story was about how speculation on day trading message boards {sigh} had prompted a whole bunch of day traders to do their dingle dangles by moving into a stock which had accidentally been pushed from $6 to $10 in an errant trade. Usual story, the punters got in at $10, the Stock Exchange suspended trading, and they lost their dough.
Aside from the statistics about the number of day traders in the market, the other fascinating detail in this article was quotes of the conversations that had taken place in these online day trader chat-rooms. Very interesting insight into how herd mentality works.
My advice is that if you are thinking about playing in the stock market, remember that, at the end of the day there are two drivers: GREED and FEAR. I've been fortunate enough to witness both first hand.
WA desalination plant ready
Australia's first major desalination plant is now ready to come online. At a cost of $400 million it is the world's largest plant of this kind outside of the middle east. It is estimated that this plant will product about 17 per cent of Perth's water supply.
With all Australian states now locked in the grip of a severe drought, I'm sure that the success of this plant will stimulate a lot of conversation over the coming Summer months.