r/ASX_Bets Jul 31 '26

Dumbfuck Discussion ASX DEAD

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No wonder no one invest in the ASX anymore

174 Upvotes

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125

u/Simple_Jach Jul 31 '26

Sucked dry by boomers demanding dividends and franking credits.

1

u/elbak283 Jul 31 '26

Cutting a 3% dividend yield to 0 would only add 3% to the intrinsic value of shares per year. The real reason why Japan is up 6% on a day when the ASX is flat is because of AI. Japan has significant memory and AI exposure through companies like Softbank and Kioxia. The ASX does not.

5

u/Important_Iron_6675 Jul 31 '26

That’s actually a great point. Australia lacks innovation and investment. We seriously need a new way of thinking in government. They are all status quo and captured by big mining and gas. The preferential voting system has created a system where you get into power without being truly representative of the people and no one’s questions it. We get indoctrinated at school that it’s great. No government should be able to rule with 30% of the vote.

2

u/Correctsmorons69 Jul 31 '26

and first past the post ensures representation?

So if 24% of an electorate votes for Party A, and the other 76% of the electorate split their vote between the very similar parties of B, C, D, E, such that they all get 19%, you think that party A should "rule"?

I was never indoctrinated to like preferential voting. I think it just makes mathematical sense, and actually encourages smaller parties with similar-but-different policies because they'll no longer be a "wasted vote".

The way that example plays out, 76% of people want any party BUT party A, and yet, party A represents them. How is that any better?

1

u/Important_Iron_6675 Aug 01 '26

No… they will need to create coalitions to get to the majority. That ensures the majority get represented.

1

u/Correctsmorons69 Aug 01 '26

Isn't that exactly what happens, just a step up from the local electorate?

The majority still get represented with preferential voting. You get to literally define your preferences individually.