Over the years, you have probably seen various economic clocks explaining the different phases, and their relative timing.
Economic Clock
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…]
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…]
Over the past weeks, I’ve posted several articles suggesting things are starting to improve — and more particularly, here in Victoria.
Upward Trend
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…]
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…]
