August Outlook: Why Recent Banking Changes Are Positive

Prudent lending is always a good sign of a healthy financial system. It’s been a long time since Australia had a recession or banking crisis. We watch the news and see this happening constantly around the world. For example, Greece’s stock market fell by more than 20% when it reopened this week. The Chinese stock market continues to spiral lower. Yet Australia enjoys a stable investment environment. This isn’t because of luck or coincidence, it is because we have some of the highest standards of regulation and a well-coordinated financial system.The Esho team always advocates a long term horizon for investment. Thinking ten, twenty or even thirty years out is what makes the difference between a successful and ordinary investor. The next three to six months might see higher loan pricing for some investors, limited price growth in some areas and other parts of the country continuing to do well – regardless of the changes. Click here to read our full note > (VIEW LINK)