We found an interesting ad encouraging Australians to save for their future (pre-compulsory superannuation)

PM Capital

PM Capital

We found an interesting ad encouraging Australians to save for their future (pre-compulsory superannuation). Orange juice certainly isn't $14 however the median house price in Adelaide was well over $400,000 in 2010. Highlighting the severely overvalued nature of the Australian property market. Australia's housing affordability is worse than other countries because the market did not breakdown to the magnitude other nations did during the GFC. Rising property prices starts alarms bell for the economy yet the real issue is when they fall- the paradox of property prices. The IMF is worried about housing prices rising too fast for the economy, and not about them rising in general as this is when a housing bubble could burst. We believe the Australian property market offers a poor risk/reward opportunity. However, there are some very attractive offshore property markets, showing greater growth and total return potential after severe collapses during the GFC. We currently have 18% of our global fund invested in US and European property related positions.


PM Capital
PM Capital

At PM Capital we are not afraid to be different, we search the world for undervalued stocks, we avoid the trap of “group think” and prioritise company valuation over all other aspects. Founded in 1998, PM Capital is part of the Regal Partners...

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