"Statistics Never Lie, or Do They?"

There are some interesting outcomes emerging from a wash-up of the recent financial turmoil.

Australia has fared best among the Western countries, with its unemployment rate at only 5.3% and falling. But does this now mean you’ll start to see wage pressures emerging?
[Read more…]

Biggest Economic Threat For Australia

It might surprise you to hear this, however …

h3. A Strong US Recovery

… would probably be the worst thing to happen for Australia in 2010.

If that occurs, the US Federal Reserve would be forced to quickly raise interest rates, from zero to around 3%. And that would cause the collapse in the Australian dollar from its current level of around US90c.

Up until now, Australia has been shielded from inflationary pressures, with a high dollar holding down the cost of imports.
[Read more…]

Keep Your Eye on Inflation!

Balancing Act

Balancing Act


Australia is supposed to be in the midst of a recession; and yet, underlying inflation is still running at 4% per annum.

If that’s the best we can do … what levels will inflation finally reach, once the economy moves into its recovery phase?

Strong sales have seen retailers cutting prices less than expected. And generally, other prices have held firm — because wages have not yet been affected by increases in unemployment.

On top of this, there are also serious supply constraints on the housing front, which are pushing up rentals.

h3. How will this affect things? [Read more…]

Taking Stock of Commercial Property

As I mentioned in a recent email to some Clients, it’s been surprising how few quality properties have been forced onto the market — given the difficulties caused by current global turmoil.

You’ve heard so much lately as to how bad things are. But let’s undertake a quick comparison for Australia — between 1990 and now.
[Read more…]

Year-end Recap, on Where Things Stand!

During October, business borrowing actually expanded by a healthy 1.1 per cent — to be 13.2 per cent for the 12-month period.

However, business debt and credit cards are considered more risky than home loans. Therefore, banks will raise their risk premium in these two areas; and not lower those lending rates, as much as the RBA’s official rate cuts.
[Read more…]

Some Answers in These Troubled Times

There are a couple of questions on the minds of Commercial Property Investors at the moment.

And they go something like this.
[Read more…]