Archives: Questions And Answers
Hi James and Team
Spark share price has been falling for some time facing competition, changes in management and strategically changing the business by selling off a large share of their Data Centre to reduce debt, although paying a high yield.
I have some real concerns about Trump’s appointment of Kevin Warsh as Chair of the US Fed.
Warsh has been appointed for four years by a president who has so little understanding of the complexities of the decisions facing the chairman of the US Fed. He considers that it is the easiest job in the government as he believes Powell was able to come to the office one day a month, flip a coin and decide on its fall what the interest rate should be.
The complexities are brushed aside with the only criteria being would he implement Trump’s agenda of lowering interest rates, regardless of the economic conditions. As Torsten Slok has shown in his three graphs of 6th February 2026, there are three big drivers of inflation: upside pressures from wage growth; rising industrial commodity prices and dollar depreciation. Only the last one can be directly influenced by monetary policy.
Warsh, in typical Trump fashion, plans to upend the decision-making processes in the Fed. He dislikes the data-dependent approach and may end the dot-plot which is so useful for indicative forecasting.
Stephen Bartholomeusz sets out some major risks with Warsh’s chairmanship (Sydney Morning Herald, February 6). Warsh wants to reduce the size of the Fed’s balance sheet and may end the QE at an inappropriate time, as the full effects of Trump’s tariffs are yet to be felt in the economy. Thus, there is no surety that the US Fed would inject funds into the markets as was done by the New York Fed during the GFC when they injected US$110 billion to ease financial pressures. Finally, Warsh has great faith that AI will quickly boost productivity, with resulting increasing growth and lower interest rates. Much to been seen here!
As I see it, the markets will respond with increased volatility, as ever. How do you see the months ahead?
You sold SIQ recently @ $8.75. I was to slow & it has fallen further. Can you expand on your decision to sell & would you consider buying back in (in the Income Portfolio) given the recent fall in the share price & solid dividend. Thanks
Thanks for the opportunity to get specific stock insights.
I am looking at Starpharma which I have patiently held for a while and there was a change in direction in Sept that seems be consolidating more definitively today except on low volumes. It may be a very delayed response? to the most recent quarterly report which did have an optimistic tone. Should one (not specific) be more wary when the sudden increase in price is not accompanied by higher volumes? I guess this is even a question that could apply to any similar moves in share prices. NOTE I am not a chartist 🙂
Hi MM team
When comparing the number buy units vs those available on the sell side , there has been a consistently higher volume of buys vs sells.
Is this real demand or the result of market makers?
Thanks, JanP
Just an observation that I see all the time that you might care to comment on:
A company’s share price reaches a level that everyone calls overvalued and unsustainable and so it gets sold off. A month later, after buyers return, the share price is back to where it was, but no one – neither investors nor analysts – is calling it overvalued any more.
Human behaviour or ‘animal spirits’, neither makes sense.
Hi Market Matters Team
The Banks have surged following CBA & ANZ reporting.
Would you be taking some profit now – especially in ANZ, NAB & WBC given they are not due to pay a dividend until May or hold as you expect the Banks to continue to strengthen. I’ve held on to some CBA – would you hold for the dividend or sell into this current rally?
regards
Debbie
Thanks, James, for your input.
