Hello and welcome to The Australian's Money Puzzle podcast. I'm James Kirby, the Wealth editor at the Australian. Welcome aboard everybody. Now imagine, imagine as an investor, a share investor, how would you feel if this happened? You wake up tomorrow morning, you look at your phone of the television and you find out that the wars treat is down twenty three percent in the day overnight. You say, oh my god.
You hope Australia when it opens will be better. Maybe there'll be a recovery, maybe there'd be some bargain hunting. The ax in a fashion which was established way back when and continues to this day, overdoes it and actually falls harder than the American market and it falls twenty five percent in a single session. Now, I wanted to keep this in mind at the moment. These days, we get terribly worried. If we have a bad day on the Essex. We have a three percent drop, it's a
big deal. If we have a five percent drop, it's front page news. Its billions have been wiped off the stock exchanges to the londondumbers. The thing is that in nineteen eighty seven, we had a twenty five percent drop. It was the greatest stock market crash of our time. It was the biggest since nineteen twenty nine, the.
Crash of eighty seven. Around the world, shear market pandemonium, good evening. The stock market sale of the century continued around the world today, with more than sixty billion dollars wiped off the value of Australian shares in the past thirty hours. At the end of and.
It's worth knowing this, the previous worst day Essex before the twenty five percent drop was her four percent drop, So it was like five times six times anything that people had seen before.
At the end of the day's trading on the Sydney Stock Exchange, the market's leading indicator, the All Ordinaries Index, had fallen five hundred and fifteen points. As the selling stampede continued around the world, some economists in now forecasting the start of a worldwide recession with.
All Now, what's that line, the historic line, If you forget the past, you're condemned to repeat it. So I wanted to remind people that crash happened this week. In nineteen eighty seven.
The Sydney Stock Exchange fifteen minutes before opening the cab before the collapse with history that no one wanted to make as Australian investors played a leader in a line that I.
Was actually in the market, very junior, but I was in the market, and I can remember there was a lead up to the Spring Racing Carnival in Melbourne. There was a Melbourne cuff looming. I had just arrived in Australia. By that, I mean I was here a couple of weeks and I was a reporter on the Financial Review, and I can still remember how difficult it was for us to grasp this because we didn't have the communications
we have now. We were basically standing around what they call a wire machine and I wanted to talk to someone in the market who would be good on this, who recalls it clearly. And my guest today was in the thick of it all at the time. He's an Australian who was in London at the time, but he was right across it. His name is Alex Moffatt. He's at the Joseph Palmer Group. Hi, Alix, how are you?
Good morning, James, thank you for the invitation. It's good to speak to you with you. It's delightful to have you on.
So it turns out, funnily enough, you're the Australian, but you're in London, and I was here on that day, which was a Monday in New York and a Tuesday in Australia, the last great crash we had. And I want to talk to our listeners today about this, because folks, there's got to be another crash. I don't know the skal of it, and I don't know when, but crashes are part of the market and we possibly as investors are having it's so good that we've probably forgotten just
how scary it is. Where were you, Alex, and tell me about the d okay.
I was in London. I was working in Irving Trust Companies dealing room in Abchurch Lane in London, and for those who know London well, Abchurch Lane is just up the road from the Cannon Street railway station. Living Trust Company was not a stockbroker. They were an American bank that was running their global bond dealing operation from London. New York at the time was the secondary operation because London, of course at the time was the center of the universe.
The Australian firm that sent me. There was one of the discount houses at the time in Australia, trans City Discount, and I was running the Australian bond operation for trans City Discount through irving trust officers in London.
What was the atmosphere like, well, how do people react with the cell of the orphant news? So James, there was You were right in your earlier comments the week before. If I can just paint a little bit of a picture the week before the Obviously, as a bond dealer, you look at all the markets around you and we keep half an eye on the stock market.
The bond market globally is about double the size of the total of the world's stock markets, but you do keep an eye on it. But it's important a lot of investment dollars go there. In the week prior to the Friday night, the sixteenth of October in London, the S and P five hundred dropped about ten percent, not in one day, but over the course of that week, and you alluded to that in your comments. You could tell that there was something wrong. We went home on
the Friday night and it just didn't feel right. Now, when the stock market has issues, credit spreads also start to widen against the risk crew rate, against government bond yields, and so the pressure was being felt in credit spreads, which is the market that I dealt in, as well as in the stock market. Now in adding it a little bit of further color, and some of your listeners
may be very young. On Sunday night, the eighteenth of October, a wild hurricane hit London and decimated a very large part of certainly Hyde Park, which was near where I was living. To the end that when I got a phone call very early on Monday morning, the nineteenth of October and someone said, Mop, look out your window and tell me what you see. We were living in devere cottages in Kensington at the time, and out on Kensington High Street I could see a double decker bus on
its side. I walked to work that day.
There was a sense of doom in the airport. There was separate to the markets. There were a lot of trees down in Hyde Park.
I walked to work and in the city of London in at Church Lane, and the morning was it just you could feel the black clouds around the dealing room. The American Central Bank had been holding monetary policy fairly tight. Alan Greenspan was the new president of the Federal Reserve.
It just it was a surreal day. And then when the Dow jones components, and for your listener's information, the Dow comprises the thirty largest stocks in the US, and when they open those thirty stocks, they opened one stock every minute for half an hour. They started about one o'clock, and by ten quarter past one, the Dow was down very hard, indeed down probably ten days. Were they're trying to stage manage such a crash that then do was happening.
That's a really good question, James, And at the time there were. It was basically the start of program trading and ground trading is probably was the lead into the I guess the artificial intelligence inspired program trading that we have now. But there are an awful lot of cell orders going into the stock market, which was why the market was going down at a rapid rate. And this
was impacting credit spreads. As I said, people started selling just to cover risk positions, So people were selling good assets like bonds to cover their bad assets like stocks. At the time, the downdrop twenty percent on that day as the S and P was down twenty percent. It's probably the worst day since the nineteen twenty nine crash, the anniversary of which is coming up very shortly.
Yes, it's interesting, isn't it. The big crushes are this time of year. They are so what Stutterbolt, do you think I have my own theory on that.
We in the Southern Hemisphere have our holidays around Christmas time, But in the Northern Hemisphere school breaks up for summer in late journe and a lot of the big fund manager and captains of industry go away to their summer houses in Spain or wherever for a long summer break, take the children with them, and they leave the juniors
on the desk, go to the summer period. Oh yeah, when they come back in September, late August, September and school resumes, university goes back, They have investment committee meetings and they readjust their risk settings, their investment parameters, et cetera. And program trading at the time was in its infancy. There were no buffers built into the programs. That controls came after that, so the setting perpetuated setting exactly. It was like a rolling snowball and it just kept rolling.
It's interesting with people off and ask about what were the causes of the eighty seven crash. And one of the things about it's almost like a sort of a mirror inmature of what were the causes of the First World War? There's the pilot causes. What were the causes of the eighty seven crash? Nothing in particular jumps out for the crash. One of the things was that not only did it so that was the day everybody listeners and I'm sure the vast majority of listeners don't remember.
I may not even know about this. It fell twenty five percent on the day, and for what it's worth, it kept going and the next few months were worse, and in the end it fell forty percent. And the bottom at that time was about five or six months
later in February eighty eight, and then it started to turn. Now, the most recent crash that we're familiar with wasn't so much a crash as a slow what did they call it, the slow motion train wreck, which is the GFC where because the authorities were trying again to stage manage how bad things were, shares fell fifty percent, but they took two years to four fifty percent from two oh seven to two nine.
Now what I want to.
Ask you, Alex is tell me about having been in the thick of things and you were credential profess in nineteen eighty seven, I was a junior reporter. I was just standing there with my mouth, just watching me and watching everybody. I remember someone saying to me, you should go around to the stock exchange, because there was a physical stock exchange on Corlett Street in the Melbourne and you could go and there was choveboards and all that. And I remember trying to go in, but the crowds,
of course, had were around the doorways. You couldn't really get in. Normally there was no one in there apart of the traders and chokies and all that. But you couldn't get in because it was like sixty But I'll
never forget it. But what I want to ask you is having witnessed, and professionally witnessed as an investor, the worst crash of our time being the Great Crash at nineteen eighty seven, did it change you did in the way that people say, Oh, I grew up in the Great Depression, my parents grew up with the Great Depression, and it characterized me. It formed me did it? What did it do to you as an investor? From then on?
It was a real water change to see change for me James, and the word valuation took on a real new meaning. And when I transitioned from the bond market to the stock market twenty years ago, valuation became all important. And there's a number of companies now which people probably are watching the technology stocks going up and up, exceeding their realistic valuations. And there's a means of calculating your company's valuation and measuring it against its peers. And I
think that's what drove it into me. So I became a value investor after that. And that goes for bonds as well as stocks. Buy when it's cheap, and so when it's expensive.
Yes, it's hard to sell. When it's expenses. It's hard to sell when you've made a lot of money out of something, isn't it?
You can always take some off the top, though. You can always take your capital out and let the the profit run.
Are you listening, waste tech investors? Are you listening NEXTDC investors? My dear waist tech is selling off for you, so you don't have to worries. But are you listening, shall we say Nvidia Investors one of the most popular overseas stocks on the Australian market at the moment, and all the big tech stocks that are that our listeners love,
the meta and alphabeta et cetera, et cetera, Facebook and Google. Okay, what we might do is take a short break and I want to going to do with the second part is I'm going to put the key question to Alex, which is all very interesting. But those were different days? Or were they different days? And could it all happen again? We'll be back in a moment. Hello and welcome back to the Australian's Money Puzzle podcast. I'm James Kirby talking to Alex Moffatt of Joseph Palmer and Sons. Alex is
a veteran of the market. He also writes a newsletter for his clients which he very nicely a few years ago, put me on the Put me on the circle and I have a look at it every morning and it's very interesting and he has a historic perspective of the
wider market which is invariably missing. Can I say from a lot of from a lot of commentations that we read, and it's really important to know what has happened in the past, Alex, you were going to I know you were, just I could see you were heading towards something there a minute ago before we talk about the prospects of it all happening against about the big companies, when in that at that time some of the biggest companies in
Australia nineteen eighty seven, that was companies like specific dun Lopigon which was a giant company. Btr night X was a giant companies. There was the great the Buccaneers, the John Elliots with Elders, the Adnate Steamship Group for John Spalvin's Homes of Court and his various enterprises, and of course the iconic figure the one, the one that stands out to this day, Alan Bond and his empire. They're
all gone and many of them were. That was the beginning of the end for them, wasn't it from any of them? The eighty seven craft Well, I think so different today.
The difference, James, and you've highlighted a lot of them. Quintex is another one that comes to mind. Christopher Scayes, who I stood in front of his desk in Collins Street in Hardy House while he signed a mountain of bills exchange for me. You wouldn't let me sit down
while he did them. But nonetheless, I think the difference between those days and these is there's one word missing in those days profit And a lot of those companies were going up on promises, expectation, sheer flow of investor money, but they weren't delivering profit or dividends. And certainly I remember that was the case in ad Steam Quintech's bond corporation. There was a lot of sharp practices and you may remember a practice which was called bottom of the harbor.
The tax ski they were around when at that time, but I was only vaguely aware of really for result.
They started in about the mid seventies and went through till the late eighties. And that's where entrepreneurs would come in by a company strip of its strip it of its assets and put some bogus directors in and then avoid any tax payments. And if you go back through your history books and there's James I'm a real fan of history, you learn a lot from it. The painters and dockers in Victoria were probably very helpful to some
of these companies. In providing stand in directors for some of these shell companies that were stripped through the bottom of the harbor schemes. So profit is the answer.
When things are really good, then the nature of scandals change, and I think people are not as worried. But it's a tough look on Chris Ellison and min As Miners, the big lithium player. They're holding it out as an example this morning both why not because there's an investigation going on now and Asika has come from. They're investigating how he's dealing with his with some sort of what would seemed to be an alleged tax arrangement that should
not have happened at Minrais. But what I want to the point I want to make is not so much about him, But it seems to me that the scandals we get at the top of the market in a hoff market are scandals of greed, and that is at common. That was a common theme in terms of how people
were dealing in around that time. In the later he said, we had a terrible crash, and we had the Harlan scheme if you remember at Elders, and we had various issues at quintechs, not to mention the sort of mind bending stuff that was going on at Bond and we have something this week now at Minrais where there is again a see you under suspicion for trying to make
even more money than they're already making. And I just wondered, do you detect in the bull market that we have now, do you detect some sort of tremors or signals that would lead us to a reprise of eighty seven?
The only things I can detect James and stewardship, And you very rightly raise that is very important. Certainly, stewardship in our company analysis through our own business is a key factor of our due diligence process before we invest a penny of our clients' funds into any company. You're quite right in raising that it's just simply appalling, and he has put his hand up astic of course will go in and do what they do, But have my own opinions of Chris Ellison, and I certainly won't share them.
Hear it, But it's not a stock that I would happily buy into. To me, the I think paul Ford Australia has come a long way since nineteen eighty seven and you look at company CEOs and boards, and there is a very high degree of probity amongst those boards. And see to the second part of the question. I'm looking also at the overall market valuations, and your observation is quite right. Our market at the moment is the A six two hundred is valued at about twenty one
times historic earnings. The long term average long term is twenty years. It's a fair measure is about just under fifteen times. So our market's expensive at the moment, and it is being driven by weight of money. And you would be very well aware that superannuation contributions assist that weight of money going in. It's yes, the mandatory wit
of money correct, exactly right. And a lot of that weight of money is going into two very large Australian superfunds, Australian Super being one of them, and so that money has to be invested, and it's invested at the time. So our market is trading expensively. I think it goes back to what I mentioned before. It's very hard finding value in the current market, and I think investors have every right to be cautious, and in being cautious, you spend more time doing your due dilsions before buying.
Okay, Now, one of the things about all our crashes, I don't know much about what happened in nineteen twenty nine here, except that obviously there was a perfect reflection of that crash, and the perfect reflection of the later depression, the Great Depression in eighty seven, there was a mirror image of the crash. In the two thousand dot Com crash, there was a mirror image of the crash. So we tend to mirror Wall Street, and when they have a crash,
for all our conservatism, this is recent counteratism. And for all our emphasis on dividends, for instance, so it's less the less our share market gives better dividends, but it doesn't give as good price appreciation as the US market. But for all that, when things go bad, we fall with them just as just as much, if not more worth. If the US has the shaft downturn, and no one knows why it would happen, but a black Swan event, okay,
so we just can't see what it is. But something happens that no one thought was going to happen, and everyone loses a nerve and there's a big fall on War Street. Will we fall with them like we always do.
We definitely will, James. And the analogy is the end of the tail on the dog. The dog wags his tail in Australia can be right at the end of the tails. Yes, we always overreact and then the recovery is slow. As you've pointed out.
If we're at twenty one times and the average is fifteen, is there a number of foot qu get seriously scared and say this has to Tom Belova. Look, I thought when the market fell over in two thousand and twenty with Covid our market Sorry edition p. Five hundred dropped about thirty five percent. That was a very fast drop, but recovered very quickly. You mentioned before the downturn in two thousand and seven eight, and you mentioned how long it took to fall that. I think it went down
eventually about sixty odd percent. It took until twenty twelve to recover. I've noticed too that through the clients who we act for, we haven't had a single instance of anyone panicking. So it's been people have held their nerve generally and recognized the downturns for what they are, typically an overreaction to an event, whether it be COVID or a housing crisis in the US, or lack of corporate profitability and bottom of the harbor in nineteen eighty seven.
The markets will eventually right themselves.
And if you look at a chart of say the S and P five hundred or the Dow or the Australian All Ordinaries Index over the last fifty years, it's a very gentle, upwardly sloping line. Yes, there are bumps and ticks, but if you go back and look at that fifty year chart of the S and P five hundred, the crash in nineteen eighty seven is a minuscule move. And time in the market.
Is very important. Yeah, time heels all wounds exactly, including twenty five percent sell offs. I I just before one, I think before we go to the break, talked about how it was five years for the market to come back, and it was only six months actually six months to get to the bottom in eighty seven, two years to get to the bottom in two oh seven, and the COVID crash very quick, that is. But that a short, sharp crash with a short sharp rebound, which is what
everyone would prefer. Nothing is worse than the sort of death of a thousand cuts where you have this long, slow decline which you had in the GFC. But what I want to ask you is this, there's a theory that there's an acceleration of everything, an acceleration of speed, acceleration of trading, acceleration of all business cycles. Would that mean that if we had a crash that it probably would rebound faster than historically.
It probably would. And they mentioned before the program trading was was aligned large part of the cause of the eighty seven crash. The authorities after that put it measures in place so that when the market drops a certain percentage, they stop trading for ten minutes, so people can never think about it. So those buffers are brought in to try to slow a disaster. Now it doesn't happen on the up side, it happens on the downside, and it's
a protection mechanism. It's to stop a total meltdown. So, yes, it will happen again. I have no doubt it will happen again. I don't know what's going to cause it. You use the term black swan. I think that's exactly right, James.
But we know there are there cushions put in place to ease the falls when they happen, and allow people time to think and take stock with thieves about the earth cushions when it comes that is inevitably will folks, and I just say that, and I meal for the blow of my heart too, who was relatively new to the markers, particularly for instance, if you came in just after the COVID period and you've had nothing but uphill
enough upheld. But if you've had nothing but and upswing basically since the day you started, just be careful that it's not as easy as it seems. And in the end, the value investing dry though it is, is very.
Strong approach to the market. Okay, we take a break with customer, really good questions. Hello, welcome back to the Australian's Money Puzzle James Kirvely with Alex Moffatt. Today we're talking on the week that is the adversary of the Great Crash of nineteen eighty seven. Now, interesting, really appropriate question from Paul. Are the Australian US and other markets approaching long term pe value peaks? Don't they tend to
correct at this point? What does history tell us you would think of, Paul that you trigger the whole show which is just a useful coincidence. It's there a point of which I was saying that to you. You said the long term average is fifty. Then you said that it we're currently trading at twenty one, right, folks, that's twenty one times price earnings value ratio, which is still the metric that people use in terms of the value
of a stock. How much is it worth, in other words, for the amount of money you put in the amount of getting back, how is its value? But the US stocks often go into the thirties. So we've had stocks that go into those stratosphere and they can be justified because they've got extraordinary earnings growth or whatever is it. But can it ever be justified with the market getting up to that? Does it have to go back to that? Does it have to return to the mean as such the fifteen times?
I didn't think so, James. In fact, I was looking at some data only last night in preparation for this discussion, and I note that China, the current average market pee there is trading below it's long term average. You're trading currently at ten point six times long term average is about twelve times. Australia, I mentioned where we're above, but we're nowhere near the top of the twenty year range.
India is the most expensive market at the moment, at about twenty five and a half times it's earnings with the long term average. The US is expensive. Japan is probably the cheapest at the moment, trading at about fourteen and a half times against a long term average of about sixteen times. So I think it's horses for courses. And this is and parcel of choosing not blindly just to invest in the US, but selecting the market that you want to invest in and going for the value
in that market. So what currency do you want to be in, which geopolitical area, which sector of market do you want to be in? Because I know a rising tide floats all boats, but some boats float higher than others.
Yes, what was our what's our high than we said it don't come averages fifteen. We're at twenty.
One, okay, our high point our in Australia the twenty year this is average, mind you, for the whole market, not just single stock, is about twenty one times, so we're close to it. So we're pretty close to the high point at the moment.
If you had an ETF know that, folks, because that's what ETFs reflect. Okay, the entire average market. All right, great question. Hope that was useful to you, paulled Lewis. I would like to get some observations, not advice, but sage wisdom. Thank you for reminding me to us this
is never advice. These information folks on next DC, as a current shareholder with the company next DC, have recently receives another announcer of the share purchase plan which has been completed, etc. Yes, indeed they are always raising money. My question is are these guys burning cash too quickly? There is no target CAF at the raising with shareholders cafter thirty thousand pound investors this time around. Is there something fishy here? Okay, I don't We would hope there's
nothing fishy at all at next DC. It's a certain type of common beney folks. I have mentioned it the show. I've actually mentioned the fact that it's in my own SMSF thankfully, very happy to say it is, and it's one of the biggest holdings I have. I didn't choose that. It just swelled on me where it's gone up to about eighteen dollars at the moment. It's got a couple of issues. It's a data center company. The two outstanding issues.
One is it's become the share market proxy along with Macquarie Technology for AI in our market, though it isn't AI, okay. It's actually a freely conservative semi property type of company
that fills data centers. It is very well regarded. And I don't want to say what I think about is, but I'll just quote, and this is some public record from a fund manager, Andrew Mitchell of o Fair Asset Management, who was in others, who has had them for a while, even longer than I have, and of course loves them as you would when you've done very well out of them. But it's just quoting from a report he recently said.
Makes this He has been the most successful operator in the space, reporting a solid full year result with revenues growing thirty percent on the prior year and EBITDA plus twenty eight. And he basically spells out what he likes about them, that they have lots of tenants if they're very well positioned, and there remains over fifteen hundred multi
tenant data center providers globally. The top ten now account for more than half of the industry's revenue, and we would expect that portion to grow as further consolidation plays out. So fun I just like them. I don't like the fact that they continually raise money, and I didn't go into the last raising. But I'm an individual investor, I'm
not an institution. There was no discount whatsoever. I thought on that, so I didn't Why would you go in you goodbye any days for the more or less the same price that That's why I held off on that one. There was one other point I wanted to make. Yes, air Trunk of course sold for inextraordinary multiple recently, and they're in the same business. Everything's going their way at the moment. That might be a problem for someone like Alex who's a value investor. Have you looked at the
AICNE Have you looked at next DC? Alex?
I have, and I like the business. I like the data center business. Another one that is starting to move into that area is the Goodman Group, and I think certainly they're worthy of investor intention, but I'd look closely next to DC.
It's just too.
Expensive for me to buy James. I think he's trading at about nearly fifteen twenty percent above what a fair value, but certainly keep an eye on it. I think hYP to reserate. I like the business, it's what.
Do you do with these companies never come into value what I often see value investor seeing it's fallen six percent, it's nearly there another three it will be in our ends, but it never comes down that little really good companies.
When did Goodman ever come in to value? It's a really good point, James. For my own self managed superfund. If I really like a company and I own next DC, I'll buy a small amount and put a toe in the water and then use when there's a major drop. Like Wise, texts happened, assess the situation, what is the reason for the drop? Watch the nature of the change of the business. Is rich and White going to be the MD forever? And then adds that position or leave
it alone? Yeah, certainly a toe in the water. It doesn't hurt.
Yeah, okay, just on that key person risk. It's an issue, isn't it? Richard at Ways Tech, Chris Ellison at Menrez. As a value investor must be really hard to assess that. If you've got someone like Jerry Harvey at Harvey Norman. I'm not talking now, I'm talking twenty years ago. If you were looking at you see this company is completely dominated by the sky. It's called Harvey Normous Jerry Harvey as a value investor. Can you put that to one side?
Kerry Packet publishing, in broadcasting in un Musque. The companies I simply won't invest in, just simply will not invest in. Okay, to me, the principal risk is too great. It's all right, just because because it's personality exactly dominant personality. Okay, very interesting, very interesting, Okay, terrific. Folks just were not saying we had someone had come in talking about revolution. Disappointed I had. I had recently done a lot of the said something
and written quite enthusiastically about revolution. Which is of course the big card services provider that I think is really impressive in how they operate and will give our banks a real run for their money when they really take off here. They've got some remarkable features to their to their cards which I think will challenge the banks in a big ways in Europe. You can keep your money on deposit with them, of course, which I would really
frighten our banks if you could do that. Here and they have this extraordinary credit card not credit card, but card arrangement where everyone's worried about the security of their cards when they use it, particularly overseas, but they've come up with this thing where you've once off disposable numbers, so if you don't trust who you're dealing with, you can just use your card and you can have a once off number of which evaporates basically after you've finished it.
I thought it was brilliant actually as a financial innovation. Now the list made the point that Revoluta has had UK National Reporting Center for Fraud received ten thousand reports in relation to Revolute and was disappointed that I didn't make more of this fair enough. The only thing I would say is that, yes, that all did happen, and after that happened, the Bank of England signed them off and give them a license. And I did make the point in the piece I wrote that it took them
three years to sign it off. Normally they take a year to sign these things off, so they did very thoughly go through. Left just thought we keer off on that, okay, Alex Moffat Joseph Parmer and sons, thank you very much. That was really good. I knew it would be. It was really interesting. I hope our listeners learned something from that pretty scary story, which is not that long ago, and in the same market that we offer it. And
we are in a pretty hot market right now. And it's the hot markets that boil over as oppose to the cool ones. Let just keep them.
Hint every money can I leave you with one thought you can on my wall in my study here, I have a certificate a share I'm sorry, A bond certificate, a bond statement which I got framed. The bond was brought by Bond Corporation on the sixteenth of October nineteen eighty seven. That was a Friday. The lead manager was Meryl Lynch. It was an eighteen million pound issue paying
six and a half percent interest. It was very successfully delve into the market by Meryl Lynch, and by one o'clock on Monday, the nineteenth of October, it was worth zero. It went from one hundred pounds per unit per bond eighty million pounds turned to zero by one o'clock Monday. I have one on my study wall.
I tell you it has us two things, not just about but it tells you that the biggest institutions in the world get involved in these things, and just because marilynch or anybody else is involved. Don't think that's actually some sort of guarantee, folks.
Exactly wrong.
Okay, Hey, thank you Alex. Great to talk to you. Thank you, and thanks for listening. Everybody, do mention us to your friends and mentioned the show. We'd really appreciate that. We have an email. We'd like to get some more questions in. They were very good today. I really enjoyed them. Thank you. Their money puzzle at the Australian dot com dot au is the email. Thank you very much. We'd talk to you soon.