Aussie market moved up and down and finally finished mainly flat. There is enough negative news that can derail optimism in early March. The currency is holding up like a rock and we will need RBA to move on rates to get that down. It’s time to buy some gold and increase cash levels as markets are likely to slide down in the first half of March before bouncing back in the back half of March after US Fed leaves the rates unchanged. RBA can change this dynamics by moving on rates in March, but history shows they will not be proactive......…. (VIEW LINK)
I think you are right regarding the elevated house prices in western Sydney... the counter arguments used to justify the high house prices in Sydney (land constraints and international investor interest) are only true for the eastern suburbs and a few suburbs north of the harbor. These arguments don't explain why people seem willing to pay close to a million dollars for houses in suburbs well to the west of Parramatta or Hurstville. However, I feel your assessment on the outlook for unemployment is too bleak: I think there is a strong case that some powerful macro forces have been putting sustained downward pressure on the Australian unemployment rate, and this will probably continue to be the case.