Our latest weekly market review we look at the momentum in the market, which has turned positive (unless you hold Crypo) starting with the US, Europe, Asia and Australia.
The big economic news on Friday from the US was that real consumer spending rose in April by the most in three months. This helped to push the S&P 500 Index to its biggest weekly gain since March.
At first glance, this may be seen as a sign of resilience on the part of US consumers despite the highest inflation rates since the early 1980s. However, look more closely and it’s not encouraging that consumers are having to dig deeper into their pockets to finance that spending with the personal saving rate dropping below 5% for the first time since 2009.
Annual inflation remains three times higher than the Fed’s 2% target and helps explain why policy makers are seen pressing on with half-point hikes in interest rates in coming meetings.
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Also join us for a LIVE property rant on Monday at 18:00.
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
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The ABS released their latest Housing Occupancy and Costs series for the financial year 2019-20. Now, this is important research of course but the potential of the findings to be useful are blunted by that fact that much has changed since June 2020, which of course was in the early phase of COIVD. With that caveat, there are some important findings.
First, in terms of basic home ownership, In the past two decades, from 1999–00 to 2019–20, the percentage of Australian households that own their own home: With or without a mortgage decreased from 71% to 66%. Without a mortgage decreased from 39% to 30%. With a mortgage increased from 32% to 37%.
In other words, more people are more in debt, no surprise for those following our shows. There are also some important state differences.
In the rental sector, Between 1999–00 and 2019–20, the percentage of Australian households that rent their home from: All landlord types increased from 27% to 31%. A private landlord increased from 20% to 26%. A state or territory housing authority decreased from 6% to 3%. Again there are significant state variations.
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
The S&P 500 and the Nasdaq finished in the red on Tuesday as worries that aggressive moves to curb decades-high inflation might tip the U.S. economy into recession dampened investors’ risk appetite.
All three major U.S. stock indexes pared their losses in afternoon trading, with the blue-chip Dow turning positive. Even so, the S&P 500 ended just 2.2 percentage points above confirming it has been in a bear market since reaching its all-time high on Jan. 3.
The Dow Jones Industrial Average rose 0.15%, to 31,928.62; the S&P 500 lost 0.81%, to 3,941.48; and the Nasdaq Composite dropped 2.35%, to 11,264.45. The volatility index rose 3.41% to 29.45.
Six of the 11 major sectors of the S&P 500 ended the session in negative territory, with communication services and consumer discretionary suffering the biggest percentage losses.
“As we step back and acknowledge the primary market catalysts, it’s really been about the Fed pivot and the change in interest rates, which have influenced prices across the capital markets,” said Bill Northey, senior investment director at U.S. Bank Wealth Management in Helena, Montana. “In the last two weeks, we’ve seen some degree of macroeconomic deterioration starting to be manifested in corporate earnings and economic releases.”
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
Join us for a live discussion with Meighan Wells from Property Pursuit as we explore the current dynamics of the rental sector. Given rising interest rates, and rents, lack of supply and the reemergence of AirB&B, how does this all play out. This is part of a DFA series on renting.
You can ask a question live.
Go to the Walk The World Universe at https://walktheworld.com.au/
We discuss the RBA’s QT programme as presented https://www.rba.gov.au/speeches/2022/sp-ag-2022-05-23.html
As the Bank now takes steps to remove the considerable monetary stimulus, increases in the cash rate are the tried and tested measure that will do most of the work, including because they can be easily calibrated to evolving economic conditions. The end of the TFF and the gradual process of QT will also play a role in this task, but a predictable and modest one.
The latest edition of our finance and property news digest with a distinctively Australian flavour.
Go to the Walk The World Universe at https://walktheworld.com.au/
