Your Handy Economic Clock

Over the years, you have probably seen various economic clocks explaining the different phases, and their relative timing.

Economic Clock

Economic Clock

Anyway, I came across this rather useful one the other day.

As you’ll see, it is actually a “Multi-asset Investment Clock” — in that you have all the sectors displayed together: Shares, Property, Resources and Interest rates.

Furthermore, if you click on it … you’ll see the clock confirms Australia is midway through its Recovery phase.

h3. And the timing for Commercial property? [Read more…]

CBD Office Shortage Looming for Melbourne

h3. And Rentals are Set to Rise …

The recent boom period saw prime Office rentals in Brisbane, Sydney and Perth hit the $1,000 per sq metre mark. However, they have fallen dramatically from that peak, since mid-2008

Meanwhile, Melbourne has remained steady at around $750 per sq metre — mainly because most of its new development has occurred in pre-committed medium-rise buildings, within the Docklands precinct.
[Read more…]

How to Interpret the Conflicting Signals

Over the past weeks, I’ve posted several articles suggesting things are starting to improve — and more particularly, here in Victoria.

Upward Trend

Upward Trend

Since the low point on 6 March, the Australian stock market has enjoyed roughly a 20% improvement. And that has also been reflected on Wall Street.

However, we then received the recent announcement of unemployment reaching 5.7% for March — the worst for 5 years.

On the one hand, the Bulls are claiming the stock market is now confirming a turnaround. And on the other, the Bears are using the rise in unemployment to support their case as to how bad things are.

Surely, these two indicators can’t both be right?
[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…]