Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
in me for a live discussion with Investment Manager Tony Locantro from Alto Capital in Perth as we reflect on the year that was, and what is coming in 2023. Expect more Locantro Bingo…
You can ask a question live!
Go to the Walk The World Universe at https://walktheworld.com.au/
We are now in the end game of a massive experiment, which is clearly failing. That experiment, cooked up by central banks, and with support from Government meant that interest rates and mortgage rates dropped, lending criteria loosened, and home prices shot up dramatically. The final phase of the up was through COVID when quantitative easing again drove debt higher, whilst luring households into a false sense of security – remember not rate rises til 2024?
But now, it’s all coming unglued as rates are rising, and the debt burden is becoming overbearing. Take Canada for example – based on a recent EBC report. They say that sky-rocketing home prices earlier in the pandemic raised the bar by several notches for Canadian buyers. But the spike in interest rates since March served a crushing blow in parts of the country.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
The latest from our property insider Edwin Almeida, as we at the latest from the markets, listings and from China. Things are getting interesting….
https://www.ribbonproperty.com.au/
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Forecasts for 2022 were wrong, so wrong, so what about 2023? Perhaps it is not about being right, but more about marketing? So, in that context, are forecasts worth the paper they are written on, and should anyone care?
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
The latest ABS stats show a remarkable turnaround in net overseas migration as the “Big Australia” policy is re-activated. But as a result, we are likely to exceed the Government targets, with a large influx of students and workers, which are likely to depress wages growth, put upward pressure on rentals and increase congestion in our major Cities.
Big Australia, without joined up planning, will be another disaster, to the detriment on many ordinary Australians, while supporting the property, business, and education lobbyists.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
The latest edition of our finance and property news digest with a distinctively Australian flavour. In this week’s market update we look across the main markets to see what has been happening. Are the markets set for further falls as we approach year’s end?
CONTENTS
0:00 Start
0:15 Introduction
1:00 US Macro
4:20 US Markets
6:45 Oil
11:34 Gold
12:25 Europe And UK
14:45 Asia
16:42 China Macro
23:15 Australia
26:08 Crypto
29:15 Conclusion And Close
http://www.martinnorth.com/
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Well clearly most central banks got the 50-basis point hike memo, as following the Fed yesterday, with the Bank of England, the ECB and The Swiss Central Bank all hikes their rates by 0.5%. Markets reacted with significant falls, as the higher for longer mantra is threatening future earning, while Treasury yields fell across the curve. This all does put the RBA out of line given its recent 25-basis point rises and suggests we in Australia are behind the ball – significantly. Hey, but then of course Australia is different – right?
U.S. stock indexes finished sharply lower on Thursday with the Dow Jones Industrial Average logging its biggest daily decline in over three months, as investors continued to digest tough talk from the Federal Reserve on inflation that revived concerns about a potential U.S. recession.
In the UK, Bank of England Governor Andrew Bailey said he saw “good news” in UK inflation figures that ticked down from a 41-year high, but there was a concern that consumer prices could leap again and that the central bank has more to do to prevent a wage-price spiral. Speaking after policy makers lifted their key rate a half point to 3.5%, the highest since 2014, Bailey said the risk is that inflation sticks around longer that the BOE is anticipating.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
People are leaving NSW for other states, driven by the failure of housing and planning policy and ultra-lose lending. The consequences are significant in terms of younger households exiting, while the burden of providing adequate support for older Australians is rising fast.
This mess will create massive problems in the years ahead.
http://www.martinnorth.com/
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.
The latest data from the REINZ shows more property market weakness.
https://www.reinz.co.nz/residential-property-data-gallery
Their commentary still tries to make a silk purse from a sow’s ear! Worth reading between the lines…
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
So the FED hiked again, and lifted the expected terminal rate to above 5% with the majority of board members agreeing this this projection. So, the markets and the FED are now not on the same page, with traders still betting on lower rates during 2023.
In addition, a slowing growth rate and higher unemployment means future earnings will be lower, suggesting that markets are over optimistic.
Things are as they say, complicated.
http://www.martinnorth.com/
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.