RBA Governor, Dr Philip Lowe, recently warned the market that the level of household debt would make the economy vulnerable to future shocks. Against this backdrop, Livewire asked Dr Philipp Hofflin, Portfolio Manager at Lazard Asset Management for his view. In this Exclusive video Hofflin he frames the current market in a long-term historical context to highlight the extremity of the household debt position: “We are in the third great debt cycle since the gold rush in Australia. The two prior cycles were the 1880’s property boom, and the roaring 1920’s property boom. They ended respectively in the 1890’s depression, and great depression.” As also illustrated by his chart below, he went on to state that: “...The current debt boom is much larger.“ Click below to access the video:
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