Kerr Neilson: Investing - what matters. Australian investors seem to have a predilection for Australian property and Australian-based listed companies. This faith has built over the years on account of a protracted period of population growth and prosperity: 21 years without any annual contractions of the economy. It has been further reinforced by the falling cost and freer access to borrowings. A relatively strong labour market which has contributed to annual rises in real wages has further enhanced this feeling of well-being and Australians have responded by taking on progressively more debt. In the late 1970s, debt to personal income was 40%, by 2013 it had risen to 150%. As Mr George Soros will tell you, the notion of reflexivity is built on participants mutually reinforcing a trend, until they don't... Far from gaining comfort from a long-established trend, it is wise to progressively raise one's scepticism as the trend ages and matures. How does one know a trend is ageing? Read the full article from Kerr Neilson: (VIEW LINK)



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