A Word of Caution!

My apologies for not posting any articles for the past week or so … but I sneaked away to Noosa with Jenny for a short break.

Anyway, I’ll make it up to you with two articles for this week.

Firstly, about Retail …

Not enough Retail TherapyYou’ve been aware of my general concern with the Retail sector over the past few years. And that’s because the fundamentals are out of alignment.

Of all the sectors within the Commercial market, most people feel comfortable with Retail. And that’s only natural — because all your family members are usually going in out of shops, as part of their everyday life.

However, familiarity with something doesn’t always make for good investment decisions.

And yet, investors continue to out-bid one another — quite prepared to accept yields as low as 3% per annum, for some Retail investment properties. [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…]