Are we there yet? RBA hikes cash rate for eighth straight month to 3.10%
The Reserve Bank of Australia has driven the cash rate up by another 25 basis points to 3.10%. Find out how much this final cash rate hike of the year has increased your mortgage repayments in 2022, and what you can expect in 2023.
– short-term risks, but five reasons for optimism Key points – The political scandal around President Trump is likely to speed up rather than stop his pro-business reforms. – However, after a strong run, shares remain vulnerable to a short-term correction with worries around Trump, North Korea, the Fed, etc, providing potential triggers. – But […]
Pragmatism and fairness rule Key points – The 2017-18 Budget has a welcome focus on housing affordability and infrastructure. – Subdued wages growth is keeping revenue collection down contributing to a slight deterioration in near term deficit projections (a deficit of $29.4bn for 2017-18) but a return to surplus is still projected for 2020-21. – […]
– Bank mortgage rates, home prices and implications for investors Key points – The RBA has left interest rates on hold. The arguments to cut or hike rates are evenly balanced and we can’t see an official rate hike until second half 2018. – For the RBA to hike rates just to slow the Sydney […]
Is Donald Trump’s honeymoon with investors over?
Key points – Donald Trump’s presidency comes with greater than normal risks. But his policy announcements should improve in quality over time and pragmatic pro-growth policies are likely to ultimately dominate populist policies. – However, the Trump honeymoon with investors is likely over with a short term period of correction/volatility likely to continue in shares, […]
Review of 2016, outlook for 2017
– looking better despite the political noise Key points – 2016 started badly for investors with worries about global growth and deflation. But global growth turned out okay &, despite political events, rising bond yields & disappointing Australian growth, the end result has been a constrained but okay year for diversified investors. – 2017 is […]
The outlook for 2017 is in places easy, in other places hard and in one particular area, near impossible. Let’s start with the impossible. I am often asked for my view on the Australian dollar against the US, Euro and Pound sterling. I think I have got this right about once in my 35 years […]
Donald Trump elected President of the US
Implications for investors and Australia Key points – Donald Trump’s election as President of the United States risks ushering in a period of policy uncertainty which could cause further share market weakness in the short term. – Australia and Asia generally are particularly exposed to this given the high trade exposure regionally. – Trump’s […]
Seven reasons for optimism on the Australian economy
Key points – The mostly gloomy debate around the Australian economy often gives the impression we are in a constant state of crisis. – But economic growth is pretty good, the economy has rebalanced without the (“inevitable”) recession, the worst of the mining bust looks to be behind us, public infrastructure spending is ramping up, […]
Megatrends Key points – Key megatrends relevant for investors are: slower growth in household debt; the backlash against economic rationalism & rise of populism; geopolitical tensions; aging and slowing populations; low commodity prices; technological innovation & automation; the Asian ascendancy & China’s growing middle class; rising environmental awareness; and the energy revolution. – Most of […]