The price of gold in Aussie Dollars surged to another all-time high. Mainstream media will tell you investing in gold is a bad idea, we disagree. Find out what the hidden message behind the gold price really is and what it means
It’s been a tough season for Australian retailers. As Aussie home prices fell and debts only climbed, most Australians were less willing to splash their cash in stores in the three months to March. Retail turnover fell in the quarter for the first time in five years.
The economy isn’t in good health, is it? That’s why the RBA cut rates last week to historic lows of 1.25%. Either the economy is stronger than what everyone thinks, or there must be another reason.
A decline in interest rates encourages a return to consumption over saving, which then creates demand to absorb the supply of goods and services. Such short-sighted policy making results in long-term damage.
It is because of weak domestic growth and booming export market that the RBA cut interest rates. It wasn’t necessary. The underlying numbers prove it.
Stocks justify being ‘expensive’ as long as the economy holds up and sustains company earnings growth. But if it slows to the point where widespread earnings downgrades start to kick in, then the market will sell off sharply.
Borrowers delight! Savers…not so much. In a widely expected move, the Reserve Bank of Australia (RBA) cut the cash rate to a new record low of 1.25% yesterday.
Imported inflation is back above 0% (thanks to a decline in the dollar) and domestic inflation is back around 2%. So the inflation rate that the RBA can control is not far from its target, yet apparently, interest rates need to fall more!
Fancy a tax cut this year? You’re not alone. But with tax filing season set to kick off in only four weeks, time is running short for the government to deliver on its signature tax cut plans. And you can point the finger of blame squarely at a class-obsessed Labor.
The Reserve Bank meets this morning to vote on interest rates. It’s widely anticipated they will cut rates, the first such reduction since August 2016. Amazingly, the economy moves into this easing cycle without first having experienced any preceding interest rate hike.
Last week, your regular editor Bernd Struben mentioned that change is coming to The Australian Tribune. Today, I’ll give you a little more detail on what that means.
Early property auction results from the weekend indicate clearance rates in Sydney and Melbourne could have crept above 60 per cent, but analysts are cautious about declaring home prices are stabilising.
According to Westpac senior economist Bill Evan, the Reserve Bank will go beyond previous notions by slashing the cash rate by three times before the end of 2019. On Friday, Evans said he now believes the central bank will head further into unfamiliar territory as it cuts the 1.5% interest rate.
It’s been more than two months since the New South Wales Labor Party has had a leader. Two months since the party was defeated by the Coalition in the state election. Not that they didn’t want a leader. Or don’t need one.
Having been returned to power with a resounding majority, the Morrison government is wasting no time digging into its core concerns. Chief among these is ensuring Australians have unfettered access to affordable and reliable energy.
Balancing Australians’ rights to freely practice the religion they believe in while protecting other Aussies with essential anti-discrimination policies is no easy feat. And as the federal election recently highlighted, getting the balance wrong can see voters turn against you.
Key Morrison government advisor, Arthur Sinodinos, believes Australia’s economy will be better off under Liberal leadership. And if they can approve the tax cuts before the end of this financial year, he says Australians will have an extra $1,080 for people earning up to $90,000.
Australia’s resource industry forms a cornerstone of its successful economy. Nowhere is that truer than in central Queensland. But in order for the industry to continue growing and thriving for the next generations, it will need some healthy investment.
The new housing deposit scheme being spruiked by both the Liberal and Labor Parties in hopes of winning your vote may lure you into buying a property you can’t really afford. And one that could still go down in value for years to come.
It’s the question that classically divides socialists from capitalists. Do you want higher tax rates in exchange for more government services…or not?
The slumping property market is already having direct negative impacts in the sectors you’d expect. Like construction. This ripple effect doesn’t look like it’s going to peter out any time soon.
The government’s new climate change legislation will, among other things, mandate a minimal 10% reduction in methane emissions from Kiwi livestock by 2030. And make no mistake. While this hasn’t happened in Australia yet, Aussie ecowarriors will be watching this legislation closely.
If you were hoping May might bring an end to Australia’s property woes, you’ll need to keep hoping. The rate of decline which began in Sydney and Melbourne at the end of 2017 may be slowing.
With governments around the world in debt up to their eyeballs, is it any wonder their experts all call for inflation in the 3% range? That, after all, will see the real cost of their debt cut in half every 24 years without them having to do anything.
Never underestimate the power of cheap money. The world’s most watched central bank put further rate rises on hold. And global stock markets boomed.
It’s a bad combination. And one that’s increasingly concerning to ANZ boss Shayne Elliott. And while he says it’s not his job to predict what the RBA will do next, Elliot believes a cut is the best way to assist the growing number of customers that can’t repay their mortgages.
Trump is hoping to force Iran back to the bargaining table. He’s after a better deal to scale back Iran’s nuclear ambitions than his predecessor Barack Obama signed off on. That may be a long way off. But in the meantime, his decision emboldened the oil bulls to drive oil prices higher.
With OPEC struggling to contain the global glut in oil, I expect we’ll see crude fall at least 20% this year. And a return to US$30 per barrel is quite possible. The main driver for that fall remains the epic amount of oil coming out of the US.
Going off CoreLogic estimates, Sydney property prices have dropped around 14% since their 2017 peak. Melbourne’s fall has been a little less, averaging at 10%. NAB chief economist Alan Oster admits these slides were larger than expected, saying ‘We now expect Sydney to decline by around 20 per cent from peak to trough, while Melbourne is expected to fall around 15 per cent’.
While the rate of price falls have slowed in Sydney and Melbourne, home prices in both cities continued to slip. And they now have plenty of company.