Oliver’s insights – house price outlook
Australian home prices rose again in April & along with other indicators suggest the home price downturn is over, but we must now watch rates and unemployment
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Econosights – how important is the banking sector to the economy?
In this Econosights we look at the role of the banking sector in an economy and how the recent developments risk a further negative flow-on impact to the rest of the economy.
Oliver’s Insights – the RBA hikes rates by another 0.25% – are we there yet?
The RBA hiked again by 0.25% taking the cash rate to 3.35%. It continues to expect to increase interest rates further.
Australia’s productivity challenge – why it matters and what to do about it | AMP Capital
Australia’s productivity challenge – why it matters and what to do about it Key points The last twenty years have seen a sharp slowdown in productivity growth in Australia from over 2% pa to around 1.2% pa. This has adversely affected growth in living standards and real wages. It will adversely affect asset class returns if allowed to persist. Policies to boost productivity growth include: labour market reforms; more skills training; ongoing high levels of …
Home price falls accelerated in August – three reasons why this property downturn will likely be different | AMP Capital
Home price falls accelerated in August – three reasons why this property downturn will likely be different Key points Australian home prices fell another 1.6% in August and are now down by 3.5% from their high. Rising mortgage rates are the main driver and there is likely more to go. We continue to expect a 15-20% top to bottom fall in home prices out to the second half of next year, followed by a …
The good news in the plunge in markets – higher medium-term return potential (assuming inflation is tamed) | AMP Capital
The good news in the plunge in markets – higher medium-term return potential (assuming inflation is tamed) Key points The fall in bond and share values and rise in their investment yields on the back of higher inflation has seen our medium term (5 to 10 year) return projections for a diversified mix of assets rise to around 6.8% p.a. If inflation falls back to around 2.5% pa this suggests reasonable average returns ahead. The …
Econosights: Implications from Australia’s energy “crisis” | AMP Capital
Econosights: Implications from Australia’s energy “crisis” Key points Australian electricity and gas price increases will impact most consumers from 1 July 2022. We expect the increase in energy prices to add 1 percentage points to headline inflation. We now see headline inflation peaking at 7% in the September quarter and trimmed mean inflation peaking at 5.5% in the December quarter. There are no changes to our expectations for the cash rate from the lift in …
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; …
Why is Australian housing so expensive and what can be done to improve housing affordability? | AMP Capital
Why is Australian housing so expensive and what can be done to improve housing affordability? Key Points The key drivers of poor housing affordability and high household debt levels in Australia have been low rates and poor housing supply. Macro prudential controls to slow home lending now look imminent. But this is just a cyclical measure. More fundamental measures to improve housing affordability need to focus on boosting housing supply and decentralising away from …