Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
The latest from our property insider, as informal lock-downs bite and apartment listing rise. Things are getting interesting… and can yabbies and Koi fish coexist?
https://www.ribbonproperty.com.au/
Go to the Walk The World Universe at https://walktheworld.com.au/
On this channel we provide a platform for a wide range of views and opinions, so people can make more informed decisions. However, sometimes those views will grate with commonly held opinions. As Philosophy is fundamentally about examining underlying assumptions about how things are, this is potentially a good thing. But some may be troubled by this – if so, you may want to watch something else!
Robert Kiyosaki is an American businessman and author. Kiyosaki is the founder of Rich Global LLC and the Rich Dad Company, a private financial education company that provides personal finance and business education to people through books and videos.
We discussed the current economic outlook, what is currently in play. He suggests we have lost the central tenant of Capitalism…. entrepreneurship.
He joined me for a discussion ahead of an upcoming event. He will take part in a free online seminar – The Masters of Wealth Property Summit – on Saturday 22 January 2022. He will be joined by Australia’s millionaire property investor George Markoski, and anyone can register for the free event at www.mastersofwealth.net.
I am not associated with the event, and do not endorse the opinions offered.
Go to the Walk The World Universe at https://walktheworld.com.au/
The markets and analysts are all focussing on the potential for the FED to lift interest rates this year, perhaps 3 times, or significantly more. But actually, we think the FED’s balance sheet is where much of the action, and market attention should be. It indicated it may be ready to start raising interest rates, dial back on its bond-buying program, and engage in high-level discussions about reducing holdings of Treasuries and mortgage-backed securities. The process of reversing the trillions of dollars of pandemic bond purchases, or quantitative easing, is technical, wonky, and somewhat opaque.
“Interest rate hikes are yesterday’s news,” Morgan Stanley Managing Director Jim Caron told Yahoo Finance on Tuesday. Caron said the “main thrust” of Fed policy will come from how it undoes the stimulus coming from its balance sheet.
Because of the massive amount of buying in response to the pandemic, the Fed owns about a third of both the Treasury and mortgage markets. If the idea for higher rates is to curb inflation, long-term rates won’t really rise until the Fed’s huge footprint diminishes, rendering rate increases on their own ineffective if bond markets aren’t speaking for themselves.
The latest weekly FED Total Assets (Less Eliminations) was released on Wednesday as reported by The St Louis Fed. Total Assets were $8.788 trillion, up by 0.26% this week, yes in the week when Powell underscored inflation was the battle now to be won (over against full employment), and that balance sheet reduction was on the cards.
“We’re mindful that the balance sheet is $9 trillion. It’s far above where it needs to be,” Powell told Congress in testimony on Tuesday. The question: How should the Fed time interest rate hikes with any balance sheet unwind? Does it matter?
he 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/
Market volatility continued Friday, as U.S. stocks retreated on wobbly economic news showing how lingering shipping challenges, supply and labor constraints, the fastest inflation in decades and the omicron variant are weighing on activity.
“It’s clear the ground is shifting under investors’ feet,” Callie Cox, US investment analyst at eToro, said in a note. “After all, the Fed’s expectation went from no hikes in 2022 to four in a matter of a few months. This could be a big change in how investors view the risk and reward of different markets. And change can be uncomfortable.”
And several major bank stocks declined after their earnings reports. Bank stocks, which had outperformed in recent weeks as interest rates moved higher, were broadly lower as their reports appeared to underwhelm investors despite strong headline numbers.
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/
This is material drawn from several recent shows on this and other channels, explaining mortgage and household stress and what is happening in the current environment – with data to December 2021 and beyond.
Go to the Walk The World Universe at https://walktheworld.com.au/
The latest from the ABS for New Lending in November reveals a significant increase, so we look at the data the its implications.
https://www.abs.gov.au/statistics/economy/finance/lending-indicators/nov-2021
Go to the Walk The World Universe at https://walktheworld.com.au/
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.
In today’s Nucleus Wealth investment podcast, Martin North of @Walk The World joins Nucleus Wealth’s Head of Investments Damien Klassen, and Senior Financial Advisor Sam Kerr to discuss if Australian Property will continue to boom in 2022.
The latest US inflation came in hot at an annual 7%, as expected, and the market was not worried.
The latest edition of our finance and property news digest with a distinctively Australian flavour.
Yesterday I warned about higher market volatility given all the moving parts in play at the moment. Well, we saw that in action again on Tuesday as FED Chair Powell gave evidence at the Senate Banking Committee.
Back in December Powell said “One of the two big threats to getting back to maximum employment is actually high inflation.” He stressed that getting back to pre-Covid levels of labor-force participation would require a long expansion, which couldn’t happen with runaway price growth.
This marked a shift in how he discussed the trade-off between wanting to see greater improvement in the labor market and tolerating persistently elevated consumer price growth. So the new line is that increasing interest rates and tightening monetary policy is a benevolent move on the Fed’s part.
And this was in evidence on Tuesday when he said “In a way, high inflation is a severe threat to the achievement of maximum employment,” he said. “We think wages moving up is generally a good thing, but if you look back through history, there are times when wages have moved up in a way that has fostered persistent inflation, and that hurts everyone.”
This is a deft move on the part of Powell, who earned respect among both Democrats and Republicans for the Fed’s response to the onset of the Covid-19 pandemic.
The total number of dwellings approved rose 3.6 per cent in seasonally adjusted terms in November, following a 13.6 per cent fall in October.
This uptick in construction may not continue, stating that while working from home may support approvals in the short-term, and that omicron could induce higher savings rates, there are bigger risks to building approvals – specifically higher interest rates.
We also know that because HomeBuilder brought forward a lot of housing projects; there are a lot of people who maybe usually would have started to build a home this year or next year that did it last year instead when they could have got HomeBuilder. So all of those factors together do create a risk of building approvals falling further in the longer term.
Go to the Walk The World Universe at https://walktheworld.com.au/
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.