Australian housing slowdown Q&A – What impact will higher interest rates have? How far will prices fall? | AMP Capital

Australian housing slowdown Q&A – What impact will higher interest rates have? How far will prices fall? Key Points Australian home prices are likely to fall by 10% to 15% into 2024 primarily as a result of poor affordability and rising interest rates. The negative wealth effect from falling home prices should help limit how much the RBA raises rates. A change in Government is unlikely to significantly affect the outlook for home prices, but …

Econosights: The RBA, the neutral interest rate and how many hikes to expect | AMP Capital

Econosights: The RBA, the neutral interest rate and how many hikes to expect Key points Inflation is running hot around the world, driven by strong goods demand, global shipping and supply issues and high commodity prices. Higher than expected inflation in Australia will see the RBA lifting interest rates to at least 1% by Dec-2022 and 1.5% in the first half of 2023. A fall in inflation in 2023 from an easing in supply pressures …

Market Update 8 April 2022 | AMP Capital

Market Update 8 April 2022 Investment markets and key developments over the past week Global share markets fell over the last week mainly on the back of hawkish central banks and ever rising bond yields. Australian shares also fell slightly with strength in utilities and energy stocks offset by weakness in retailers, IT and materials. Bond yields rose sharply, and oil, metal and iron ore prices fell. While the $A briefly made it above $US0.76 it …

Five great charts on investing that are particularly useful in times of uncertainty like the present | AMP Capital

Five great charts on investing that are particularly useful in times of uncertainty like the present Key Points Successful investing can be very difficult in times like the present with immense uncertainty around inflation, interest rates, war in Ukraine & continuing covid waves. This makes it all the more important to stay focused on the basic principles of successful investing. These five great charts help illuminate key aspects of investing: the power of compound interest; …

Market Update 1 April 2022 | AMP Capital

Market Update 1 April 2022 Investment markets and key developments over the past week It was a mixed week for markets in terms of the economic data and news flow. US equities started the week strong, but are still down by 0.3% over the week (and ~6% below January highs), European shares had a good rebound up by 0.9% (but are still 11% below January levels), Japanese shares were 1.8% lower, Chinese shares continued to …

7 tips to reduce your debts before you retire

7 tips to reduce your debts before you retire As your working life draws to a close, your social life and recreational activities don’t have to. If you’re a little anxious about money still owing, here are a few pointers. Ahh retirement! You may have been dreaming about it for decades. You visualise yourself putting away your uniform, high-vis or corporate gear, farewelling that lovely boss of yours and spending the rest of your days …

The 2022-23 Australian Budget – a “magic election pudding” of more spending and lower deficits | AMP Capital

The 2022-23 Australian Budget – a “magic election pudding” of more spending and lower deficits Key Points A budget windfall has allowed both more spending and lower budget deficits, with the 2022-23 budget deficit expected to be $80bn (down from $99bn in December). Key measures include “cost of living” payments, a temporary cut to fuel excise, more spending on infrastructure & defence & more help for home buyers. Relying mainly on nominal economic growth to …

Oliver’s Insights – Five big picture implications of the war in Ukraine of relevance for investors – and why are Australian shares holding up better?

Oliver’s Insights – Five big picture implications of the war in Ukraine of relevance for investors – and why are Australian shares holding up better? Key points The situation regarding Ukraine is at high risk of getting worse before it gets better for investment markets. The key is how much Russian energy exports are disrupted & whether NATO forces avoid the conflict. Five big picture implications are likely to be: increased geopolitical tensions; reduced globalisation; …

The US Federal Reserve starts raising interest rates – implications for Australia and investors | AMP Capital

The US Federal Reserve starts raising interest rates – implications for Australia and investors Key Points The Fed has finally joined other central banks in raising interest rates, taking the Fed Funds rate from a range of 0-0.25% to 0.25-0.5%. This was well flagged and reflects the tight US labour market and high inflation. The Fed flagged another six rate hikes this year and the start of quantitative tightening soon. First rate hikes in a …

Market Update 18 March 2022 | AMP Capital

Market Update 18 March 2022 Investment markets and key developments over the past week The past week saw share markets rebound helped by optimism about a peace deal in Ukraine, a fall back in oil prices, relief that the Fed’s first rate hike was broadly as expected with the Fed seeing the US economy as strong and indications that China will provide more policy stimulus partly to combat covid related lockdowns. This saw strong gains in …