Strong U.S. and European corporate results could not stop a slide on Wall Street, where the NASDAQ entered a correction, as rising crude prices kept inflation concerns alive even as bond yields eased a bit after earlier touching fresh multiyear highs.
The NASDAQ closed more than 10% lower from its Nov. 19 record closing high to confirm a correction as investors continue to price in the Federal Reserve moving faster to hike interest rates, fears that led to Tuesday’s sell-off.
The latest edition of our finance and property news digest with a distinctively Australian flavour.
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The Valuer General is responsible for providing independent and impartial valuations for use by councils and the state government for levying rates and taxes and determining compensation for landowners when their land is compulsorily acquired.
The independence of the Valuer General ensures a clear separation between the impartial land valuation process and how state and local government use the valuations for levying rates and taxes or for determining compensation following the compulsory acquisition of land.
The NSW Valuer General latest report shows that Residential land values in the state saw an overall increase of up to 24.8 per cent from $1.4 trillion to $1.8 trillion in the last financial year. They called this “an astonishing” 25 per cent rise. The report also revealed the total value of land in NSW rose 24 per cent over the reporting period – doubling to $2.2 trillion since 2014, representing a dramatic acceleration in the historic rate of growth. Every market sector was hot through a tumultuous 12 months, according to the analysis of more than 67,000 property sales.
Coastal lifestyle locations Byron Bay and Kiama have led the way as NSW residential land values. The rural market was the standout performer with a 26 per cent rise, the logistics boom propelled a lift in industrial land values of 23 per cent, while commercial and retail land values increased 15 per cent. “It took almost 100 years – from 1916 to 2014 – for the value of land in NSW to surpass $1 trillion in total value, but just seven years to go from $1 trillion to $2 trillion,” Valuer-General David Parker told The Australian Financial Review.
“In the middle of a global pandemic, to have this level of land value growth across the entire state is astonishing,” Dr Parker said.
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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.
I caught up with George Markoski of Positive Property Solutions to discuss his view on property investing. Is there really a simple approach in the current environment?
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 Robert Robert Kiyosaki, 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/
Once gain the markets were weaker in the US on Tuesday. As well as inflation fears and interest rate hike concerns, falls were triggered by an 8% slide in Goldman Sachs shares after Wall Street’s premier investment bank missed quarterly profit expectations, hampered by weaker trading revenues and rising expenses.
That share decline put Goldman on course for its worst single-day showing since June 2020, shedding about $10 billion off its market valuation since Friday’s close, although it recovered to trade down 6.5% towards the close. This earnings miss triggered further selling in Wall Street banks. Morgan Stanley, which reports quarterly results on Wednesday, was down more nearly 5%, while JP Morgan added to losses from a week earlier, down more than 4%.
We are seeing a repeating story, with bank stocks reporting lower than expected earnings. Bank earnings in the fourth quarter have taken a hit from lower trading volumes as the Federal Reserve slowed the pace of its asset purchases after 18 months of pumping liquidity into capital markets to ease the impact of the COVID-19 pandemic.
The Fed’s intervention had fuelled trading activity as clients bought and sold more stocks and bonds, repositioning their portfolios to match the changing economic environment. But fourth-quarter earnings from large U.S. banks have showed the market backdrop returning to more normal levels.
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.
Join us for a live discussion as I explore the real estate industry with Executive Chair at LongView. LongView aims to help people successfully invest and manage their properties over the long term. With serious Silicon Valley data analytics, finance expertise and arguably the strongest property management team in Melbourne, they help over 4,000 property investors with over $7Bn of residential property investments.
The number of residential property sales across New Zealand decreased by 29.4% annually, from 9,573 in December 2020 to 6,755 in December 2021 according to REINZ. The number of properties sold was also down 21.4% month-on-month.
For New Zealand excluding Auckland, the number of properties sold in December 2021 decreased 26.6% annually from 6,048 to 4,442. While in Auckland, the number of properties sold decreased 34.4% annually — from 3,525 in December 2020 to 2,313 in December 2021. Month-on-month, there was a 26.6% decrease.
We look at the latest numbers.
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 from our property insider, as informal lock-downs bite and apartment listing rise. Things are getting interesting… and can yabbies and Koi fish coexist?
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/
