Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market rolled over in line with Canada on mainly commodities driven profit taking. Financial Sector Inquiry response by the government today cleared the way for the banks to push ahead with mortgage rate rises while RBA minutes really did not deliver anything new. RBA keeps themselves on the fence while behind the scenes will be hoping that the Banks move on rates and deflate the housing bubble. Domestic property cycle has turned and the only way is down for prices as rates go up, rentals fall down and oversupply is inevitable in the short to medium term. We maintain our view from May 2014 that domestic housing bubble will burst in 2015H2/2016H1 period. State and Federal governments are talking a lot of tax reform and the majority still favour GST rise. The clear signal for consumers is that taxes overall are going to go up for middle to low income earners. Overnight Canada has thrown out the conservatives government and put in a centralist one…bit like what is in play in Australia. (VIEW LINK)
Over 25 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...