Housing affordability is set to be a key item in tonight’s Budget and Philip Lowe, the RBA Governor, has delivered a timely speech addressing the RBA’s position on the issue. It was a calming message aimed at tempering concerns about rising household debt and the economic impact of a housing... Show More
When the US Federal Reserve (“the Fed”) Chair announced the much anticipated increase in the Federal Funds or cash rate on 15 March, she noted that the Fed intended to maintain the size of its balance sheet through this calender year. In other words the Fed would, for at least... Show More
Portfolio Manager Gerald Stack discusses whether or not rising interest rates will hamper infrastructure stocks, why he insulates the portfolio from changes in the oil price and why he has reduced his cash holding, of late. Show More
Retirement funding is becoming an ever-growing burden on government budgets and 10-year bonds are not offering a fair risk-adjusted return, even after recent corrections. Adding fuel to the flames – relentless foreign indebtedness growth, reliance on foreign equity, low inflation and wage growth, declining export commodity prices, record low cash... Show More
There’s a strong chance the Reserve Bank could cut the cash rate on Tuesday to a record low 1.75% following the release of weaker than expected March quarter inflation Show More
One of the most important things to have occurred over the past week is the recovery in commodity prices. It suddenly feels like things are starting to improve in the Australian economy. This is important because it means less pressure on Australia’s economic growth and less drastic moves by the... Show More
The RBA is hostage to offshore central bank policies and the only way out is to ditch its rigid free market beliefs that limit its activity to setting rates. At some point the RBA will need to realise that cutting cash rates is a weak tool in a world where... Show More
If the Fed put up rates by a quarter of a percent will it really be the end of the world like some investors think? Investors have become paranoid about a possible hike in US interest rates. We think the panic being spread about US rate rises is being promoted... Show More