Archives for October 2010

Will They … or Won’t They?

Balance

Balance

Last month, the RBA left rates on hold — because of what it saw as mixed signals within the Australian economy.

And the rising $A is certainly making its job easier, by generally cooling activity.

Work Allocation

Work Allocation

Growth within the Construction industry appears to have fallen to its lowest level in 18 years. Although turnover for mining and processing plants has once again returned to its path of upward growth.
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Where in the Debt Cycle?

In several recent postings, I have given you an overview of where Australia’s economy currently sits within the overall global scene.

The Worm Turns

The Worm Turns

Well the other day, I came across this really neat chart … as part of an article within the Financial Review.
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Global Progress?

The IMF has recently trimmed its overall global forecast — down to 4.2% from 4.3%, for 2011.

Global GrowthThe emerging and developing economies are tipped to grow by 6.4% (with China’s growth being over 9%).

Whereas, the various advanced economies are expected to grow by a subdued 2.2%, on average.

However, any double-dip recession is considered most unlikely — as investment and domestic consumption has replaced the building up of inventories.

According to the IMF: “Investment in machinery and equipment is already showing strength in a number of advanced economies.”

Nonetheless, spending and investment in most advanced economies will be constrained by households replenishing their savings; and banks remaining reluctant to lend freely to businesses. Plus, the US housing market still languishes.

Overall, the lack of business investment (and therefore employment growth) will adversely impact on tax revenues. And thereby, make government debt reduction programs a slow process.

On all counts, Australia will continue to enjoy solid growth — relative to other advanced economies. And this will provide ongoing pressure for interest rates to rise, over the next three years.

All the more reason to lock in your interest rates long-term … for any Commercial property investments you intend to make.

Will Australia’s Growth
Remain Strong?

Pick up any newspaper, and you’ll find most commentators saying the Resources boom is back on once again.

Also, people are pointing to China as our guiding light going forward.

But is this really true? And if so, why?

Here’s a short Video giving you a quick insight into whether there really is any substance to what we’re being told.
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