Bond Returns, Lower For Longer?

From Moody’s A less accommodative US monetary policy may heighten market volatility near term. However, over time, the fundamentals that give direction to business activity and financial markets will prevail. For now, current trends involving demography, technology, regulation, and globalization favor the containment of core price inflation and still relatively low US Treasury bond yields. … Continue reading “Bond Returns, Lower For Longer?”

RBA Says The Next Chapter Is Coming

An interesting and wide ranging speech from RBA Governor Philip Lowe. In short, the global economy is on the up, central banks are beginning to remove stimulus, and locally, wage growth is low, despite reasonable employment rates. Household debt is extended, but in the current low rates mostly manageable, but the medium term risks are … Continue reading “RBA Says The Next Chapter Is Coming”

Income inequality ticks down as the rich see their incomes fall: ABS

From The Conversation. Income inequality has dropped slightly in Australia, largely driven by a fall in incomes for the richest 20% of the population, according to the latest Australian Bureau of Statistics (ABS) Survey of Household Income and Wealth. The richest 20% of the population have seen their real disposable incomes (adjusted for the number … Continue reading “Income inequality ticks down as the rich see their incomes fall: ABS”

Job Ads Up Again – ANZ

ANZ says Job Advertisements rose 2.0% m/m in August, the sixth straight rise. Job advertisements currently sit 13.3% higher than a year ago. In trend terms, job ads were up 1.3% m/m in August following a 1.4% rise in the previous month. Annual trend growth picked up slightly, rising from 11.6% in July to 12.5% … Continue reading “Job Ads Up Again – ANZ”

Low US Inflation Signals Interest Rates Will Remain Lower For Longer

The latest data from the US which shows low inflation and wage growth has pulled the implied forward interest rates down suggesting the Fed will hold rates lower for longer.  This is reflected in falling yields on the T10. Nearly half of the “Trump Effect” repricing has been undone. This is also flowing into lower … Continue reading “Low US Inflation Signals Interest Rates Will Remain Lower For Longer”

RBA Minutes For August Says Little (In Many Words)

The latest RBA minutes really does not add much to our understanding, other than the bank continues to watch developments in the property market, they are holding to their forecasts on growth, and the signals across the economy are mixed. Perhaps they were muted because of the reaction to the 2% rate lift to neutral … Continue reading “RBA Minutes For August Says Little (In Many Words)”

Here’s why it’s so hard to say whether inequality is going up or down

From The Conversation. Is inequality rising or falling? The answer, if recent public debate is anything to go by, may appear at first to depend on who you ask. Part of the reason why we get such conflicting narratives about whether it’s rising or falling is that economic inequality can be measured in different ways, … Continue reading “Here’s why it’s so hard to say whether inequality is going up or down”

Income divide between rich and poor Australians widening

From The New Daily. Income inequality is worsening in Australia, according to comprehensive new research that finds renters, pensioners and students are feeling the pinch while high earners get pay rises. ME bank’s twice-yearly survey of 1500 households, conducted in June and published on Monday, revealed bigger gaps in income, housing and financial worries across the nation. In the … Continue reading “Income divide between rich and poor Australians widening”

Renters Under Pressure – The Property Imperative Weekly 29 Jul 2017

Rental Stress is growing, and more property investors are underwater when it comes to covering their mortgage costs on an ongoing basis, so what are the implications for property investment as mortgage rates continue to rise? Welcome to the Property Imperative Weekly to 29th July 2017. We start with our research on property investment, which … Continue reading “Renters Under Pressure – The Property Imperative Weekly 29 Jul 2017”

The Household Debt Quagmire

We know that household debt has never been higher in Australia, but I do not think the true impact of this, especially in a rising interest, low income growth environment is truly understood.  We have to look beyond mortgage debt. The latest RBA E2 – Households Finances – Selected Ratios shows that the ratio of … Continue reading “The Household Debt Quagmire”