Here are ten things that I think will shape the global and Australian economies in 2018, and that expect I’ll be talking about at conferences and events over the course of the coming year. Show More
deflation
Capitalism works because companies are free to enter and leave businesses. Labour is also free to move from one activity to another. Returns on capital, human and physical, are then mean reverting in that more competition and capital enter attractive businesses and vice versa. The modern version involves government regulation... Show More
I consider the oil price to be the single most import chart to watch today. OPEC oil producers still appear committed to the production agreement but US oil producers are adding to global supplies and keeping downward pressure on prices. The chart is telling me that oil prices looked to... Show More
Aussie market got hammered on US sentiment and finished slightly higher than the low of the day after a big mid-day bounce to almost flat territory was killed off by weak wages growth data. Volatility was clear to see and the investors were not sure which way to go. Global... Show More
Central bank currency wars, political election cycles and a corporate survival mode will continue to put downward pressure on growth rates and interest rates. The RBA has been pushed into an interest rate easing cycle as deflation worries starts to bite. The global growth worries, weak US data and weak... Show More
Unlike in the economic theories followed by central bankers, deflation is actually a good thing. Show More
The Reserve Bank has cut the cash rate to a new historic low of 1.75% - its first move in 12months. Board members noted that "inflationary pressures are lower than expected." MORE MARKET NEWS AT https://www.commsec.com.au/market-news/the-markets.html Show More
Central banks want prices to rise consistently and with low volatility, normally in a range of 2 to 3% per annum. Prices growing at greater than 3% per annum apparently signal capacity constraints in an economy, so the central bank raises interest rates to crimp consumer spending and investment -... 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
Mark Burgess the former CEO of Australia’s Future Fund shares his assessment on the recent sell off in risk assets. Specifically he believes markets are flagging the prospect of a deflationary recession – a scenario foreign to many investors. “What happens when you are dealing with deflation and excess supply,... Show More