ANZ’s capital raising shows how important pricing of assets is in these difficult markets. Everyone is at risk of misreading prices and values! Investors, shareholders, boards and indeed investment banks need to have a basis for assessing value because market prices are being shown to be volatile and illusory. Investors need to carefully watch the pricing of markets and securities. The lesson is clear: investment in equities is a long term endeavour and a focus on the short term actually creates more pricing risk and not less. Indeed short term pricing actually gives no indication of value. (VIEW LINK)
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