"Intelligent Insight"
Show Me The Numbers! A deep dive into some of the fallacies which driven by MSM (and who pays the bills?) as we look at the latest from our property insider.
https://www.ribbonproperty.com.au/
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Go to the Walk The World Universe at https://walktheworld.com.au/
Spain might be an example we should be looking at, as their inflation has fallen below 2%. How did they achieve this compared with the UK or Australia?
Simply put they went beyond the simplistic interest rate lever, and used effective fiscal measures as well.
So today we look at lessons we can learn from Spain, and suggest there is indeed an alternative path, but one which requires a different linkage between monetary (interest rates) and fiscal (taxes and spending).
And, don’t forget, Central Banks created the inflation monster in the first place!
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
In a choppy trading session indexes rose in the morning, then wavered before turning negative so Wall Street closed lower on Friday after a report of slowing U.S. labor market growth, and all three major indexes posted weekly losses as investors braced for more possible downside surprises a day after disappointing earnings from Apple.
A mixed July jobs report showing fewer than expected job gains in July, but an uptick in wages that threatens a re-acceleration in inflation and so more FED action. Still the markets are holding the faith on a soft landing for the economy as the FED tightens. It still though might feel like a hard bump.
The weekly percentage declines for the S&P and Nasdaq were the biggest since March, with some investors taking profits after five months of gains due to economic data, disappointing earnings and rising Treasury yields.
The Labor Department reported that U.S. employers added 187,000 jobs in July. Data for June additions was revised lower to 185,000 jobs, from 209,000 reported previously. Average hourly earnings rose 0.4% in July, unchanged from the previous month, exceeding expectations, taking the year-on-year increase in wages to 4.4%.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
My latest Friday chat with Journalist Tarric Brooker, as we deep dive into the latest charts and trends.
You can see the charts here: https://avidcom.substack.com/p/dfa-chart-pack-4th-august-2023?sd=pf
Japan article here: https://avidcom.substack.com/p/kamikaze-bank-of-japan-policy-and
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
The Bank of England lifted rates again today by 0.25%. They also signalled rates would be higher for longer, and that they would be data driven (similar message to the FED and ECB).
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
This year’s $6.5 trillion rally in stocks hit a wall, following hot labor-market data and a ramp-up in Treasury issuance just a day after a US credit downgrade by Fitch Ratings.
As a result, Wall Street finished lower on Wednesday, with the S&P 500 and Nasdaq Composite down for a second straight day as investors took profits on five months of gains a day after rating agency Fitch cut the U.S. government’s credit rating.
Fitch downgraded the United States to AA+ from AAA late on Tuesday, citing expected fiscal deterioration over the next three years as well as growing government debt. Fitch was the second major agency to cut the country’s rating. In 2011 Standard & Poor’s stripped the country of its triple-A grade.
Pushing back hours before her department is set to ramp up its borrowing to plug a ballooning budget deficit, Treasury Secretary Janet Yellen called the downgrade “arbitrary” and “outdated.” The economy has recently shown signs of resilience and the debt limit was ultimately lifted, she noted.
The US budget deficit surged to record levels when the government spent heavily to support households and businesses as Covid shut down the economy. It shrank last year, but now it’s widening again. The federal deficit hit $1.4 trillion for the first nine months of the current fiscal year, almost triple the year-earlier figure. The US Treasury this week boosted its borrowing forecast for the current quarter to $1 trillion, well above the $733 billion it had predicted in May.
Fitch’s downgrade is a signal that the US needs to get its budgetary process in order ahead of what looks like another political fight this fall, and possibly another government shutdown.
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.
A quick update from our latest modelling which shows financial pressures continue to build across Australia.
You can join me for a live discussion about this analysis, and look at specific post codes next Tuesday. https://youtu.be/oiiDCfxiwPU
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
The latest from the ABS on Living Costs highlights that for most households, real costs of living are rising faster than those represented in the CPI.
In fact, when rising mortgage costs are included (up 91.6%) some households are exposed to cost pressures much higher than represented in the CPI – and these are averages of course.
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.
This is an edited version of a discussion with Head of Investments at Walk The World Funds and Nucleus Wealth, Damien Klassen. Has FOMO taken over as inflation eases down, or is this a head fake?
Go to the Walk The World Universe at https://walktheworld.com.au/
The RBA held the cash rate again, while the ABS reported strong mortgage refinance, though lower credit growth, and lower building approvals. And Consumer Confidence moved slightly higher, but still in negative territory.
You can join my live show later today as I discuss the latest with Damien Klassen from Nucleus Wealth.
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.