You don’t need a catalyst for a crash
In any discussion of the Australian housing market, it’s impossible to avoid discussion of a catalyst. “We see no immediate catalysts for a crash,” has become the cry of the perpetual housing bull. But Dr Philipp Hofflin from the Lazard Australian Equity Team believes a catalyst is unnecessary.
“When we look for catalysts, we have to be aware that a sufficiently expensive market can sometimes fall just because momentum switches… To this day, nobody really knows why the stock market crashed in October ’87; why not six months earlier?”
Hofflin quotes a plethora of examples, such as the NASDAQ in 2000, Spain and Ireland in the GFC, or Japan in ’89. In the short video below, he discusses why the RBA may struggle to cut rates while the Fed is hiking.
About Lazard Australian Equity
Our primary stock-selection screen identifies companies that are trading at a discount relative to their intrinsic value. Find out more
Welcome to Livewire, Australia’s most trusted source of investment insights and analysis.
To continue reading this wire and get unlimited access to Livewire, join for free now and become a more informed and confident investor.
1 contributor mentioned
Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.
Please sign in to comment on this wire.