Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
Research from Consumer NZ highlights the role of the Bank of Mum and Dad in New Zealand, in parallels similar to those already seen in our research in Australia.
Many kids can only get into property thanks to inter-generational wealth shifting, and in some cases this is also putting parents under financial pressure. This is a sign on long term property failure.
The latest from our property insider Edwin Almeida, as discuss the latest in price trends, under-quoting, and migration. And some great tips on how to address auctions.
https://www.ribbonproperty.com.au/
Go to the Walk The World Universe at https://walktheworld.com.au/
The latest data from the ABS reveals that The Consumer Price Index (CPI) rose 2.1 per cent in the March 2022 quarter and 5.1 per cent annually, according to the latest data from the Australian Bureau of Statistics (ABS).
More importantly, non discretionary costs were up 6.6% – things you have to buy. So this underscores the issues households are facing. Expect more pressures ahead, and upcoming RBA rate hikes.
Go to the Walk The World Universe at https://walktheworld.com.au/
In early 2021, Adams and North covered in a few episodes a series of problems with unallocated and pool allocated silver and that such products are little understood by retail investors.
During the course of March and April 2021, Adams was active on social media and YouTube calling out the problems with unallocated and pool allocated products. Adams’ criticism moved beyond Perth Mint and targeted other companies such as Kitco Metals Inc. – Canada’s largest bullion dealership.
In late April 2021 (a year ago), Kitco through their Sydney based lawyers Dentons – sent a Cease and Desist notice and thus a legal battle ensued. This show brings the audience up to date with this because this was a hot topic last year and some members of the audience contributed to a legal defence fund that he had set up.
Go to the Walk The World Universe at https://walktheworld.com.au/
The latest edition of our finance and property news digest with a distinctively Australian flavour.
European stocks slid to a one-month low and commodity prices dropped on Monday on renewed concerns about rising interest rates and China’s sputtering economy, while Wall Street shares rose, reversing losses after Twitter agreed to be bought by billionaire Elon Musk.
Fears over China’s COVID-19 outbreaks spooked investors already worried that higher U.S. interest rates could dent economic growth. U.S. shares were lower throughout most of the session, extending last week’s sharp declines.
The Dow cut losses to close higher Monday as dip-buying in tech stocks ahead of a crucial week of quarterly results for big tech steadied the broader market just as global growth worries returned.
Go to the Walk The World Universe at https://walktheworld.com.au/
Those following my channel will know of the modelling which shows the strong link between credit availability and home prices. We know that when credit is tight, and the rate of change in credit is negative, home prices fall. And we are seeing this in spades now in New Zealand.
So today I want to explore some markers in New Zealand, and why property will fall further and faster.
Go to the Walk The World Universe at https://walktheworld.com.au/
In this week’s market summary, we as usual start in the US, cover Europe and Asia and end up in Australia. This is because the US market trends drive other markets, like it or not. No market is an island – especially Australia.
Now, back in 2018, when the Fed was conducting quantitative tightening and increasing rates, US mortgage rates were around 5%, the dollar index was over 97.50, oil was trading at over $75, and the 10-year rate was around 3%. But the FED broke the markets, as the S&P 500 plunged by around 20%, and so they had to back-peddle from rate hikes. It first held them steady and then had to cut rates and restart QE by the autumn of 2019.
Just four years later, we again have mortgages rates over 5%, the dollar index is at 100, oil is trading over $100, and the 10-year rate is approaching 3%. On top of that, the Fed is now embarking on an even bigger rate hiking cycle and is very likely to conduct quantitative tightening at double the pace of the 2018 version.
CONTENTS
0:00 Start
0:15 Introduction
0:45 Fed And U Turns
3:00 Rate Rises and Policy Errors
4:40 USD
5:00 Gold
6:40 Bonds
9:15 US Economy
11:20 Reporting
12:05 US Markets
14:40 Oil
15:00 UK
15:55 Europe
17:30 Asia Inc.China
20:00 Australia
24:00 Bitcoin and Crypto
24:30 Summary and Close
Go to the Walk The World Universe at https://walktheworld.com.au/
Something weird is happening, despite the strong rise in a pantheon of commodity prices, commodity exporters are not feeling the love in terms of currency appreciation. The currencies of commodity exporters—e.g. CAD, AUD, and NZD in the G10—have underperformed the rise in commodity prices themselves. So what’s going on? Well, Goldman Sachs had a good go at trying to explain what is happening.
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
Wall Street’s ended lower on Thursday, with the NASDAQ dropping more than 2%, as investors reacted to Federal Reserve officials including Chair Jerome Powell offering further signposting of aggressive interest rate hikes this year.
He outlined his most aggressive approach to taming inflation to date, potentially endorsing two or more half percentage-point interest-rate increases while describing the labor market as overheated.
“I would say that 50 basis points will be on the table for the May meeting,” Powell said at an IMF-hosted panel on Thursday in Washington that he shared with European Central Bank President Christine Lagarde and other officials. He said demand for workers is “too hot — you know, it is unsustainably hot.”
Australian shares dropped 1.4 per cent, or 108.5 points, to 7484.3, in early trade, tracking Wall Street and pulling away from a near record high on Thursday.
Ten out of the index’s 11 categories fell with materials the biggest laggard down 3.5 per cent. Industrials stocks were unchanged.
The major banks and mining giants were also under pressure. The AUD was down a little to 73.64. This continues a decoupling if the AUD and commodities, which is worth a more detailed separate post.
Go to the Walk The World Universe at https://walktheworld.com.au/
Before each federal election, the heads of the Commonwealth departments of treasury and finance release a report on the state of the government’s budget, together with updated economic forecasts. It is known as the pre-election fiscal and economic update, or PEFO.
Before PEFO was introduced in 1998, when a government changed hands it was routine for the newly-elected government to renege on its promises by saying something along the lines of: …we are shocked, just shocked! We had no idea how bad the country’s finances were!
PEFO has done away with that excuse forever. It means both sides of politics know the state of the books going into the election.
Parties’ promises are made with that full knowledge. Incoming governments no longer have a budgetary policy excuse for dropping their promises.
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.