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 …

Oliver’s Insights – The RBA ends bond buying – but remains “patient” on rates. We expect the first rate hike in August

Oliver’s Insights – The RBA ends bond buying – but remains “patient” on rates. We expect the first rate hike in August Key points The RBA will end quantitative easing this month. While it now sees unemployment falling below 4% and higher inflation it is prepared to be “patient” for now. We expect rate hikes to commence in August. Ultimately, we see the cash rate rising to around 1.5 to 2% in the years ahead …

Oliver’s Insights – The longer-term legacy of coronavirus – nine implications for investors

The longer-term legacy of coronavirus – nine implications for investors Key points Likely key longer-term implications flowing from the coronavirus pandemic are: bigger government; increased money supply and excess saving; increased geopolitical tensions; reduced globalisation; a faster embrace of technology; a greater focus on lifestyle; and a potential post-pandemic boom. The biggest risk is of significantly higher inflation, reversing the long-term downtrend in interest rates. Introduction The magnitude of the coronavirus shock means it will …

Market Update 3 December | AMP Capital

Market Update 3 December Investment markets & key developments Global share markets had another rough week as uncertainty around the impact of the Omicron variant on global growth and Fed Chair Powell flagging a faster taper led to a bit of a roller coaster ride. While Eurozone shares are up slightly for the week and Chinese shares are flat, US and Japanese shares are down. The week global lead and news of the arrival of Omicron …

Oliver’s Insights – US political protests, inflation and rising bond yields

US political protests, inflation and rising bond yields Key points US protests are only an issue for investment markets if they significantly impact economic activity. Global and Australian recovery will boost bond yields and there is good reason to believe that (after yet another false ending) the now nearly 40-year super cycle decline in bond yields may be at or close to over. But the end of the bond bull market is likely to be …

How ‘Buy Now Pay Later’ affects your credit score | Money & Life

How ‘Buy Now Pay Later’ affects your credit score What impact does ‘Buy Now Pay Later’ have on your credit score, particularly for people wanting to secure a home loan? Christopher Zinn explains. In recent years, ‘buy now pay later’ (BNPL) has become an increasingly popular method for consumers looking to purchase goods via installments without resorting to credit cards. These services are often billed as a safer and more convenient  way for consumers to …

Market Update 21 May | AMP Capital

Market Update 21 May   Investment markets and key developments over the past week Share markets had a bit of a rough ride with inflation fears continuing to impact and this left them mixed for the week with US and Eurozone shares down but Japanese and Chinese shares up. Australian shares were hit hard earlier in the week by inflation fears and concerns about China diversifying its iron ore supply away from Australia (which is …

APR 21 – Federal Budget & global markets update | AMP Capital

ECONOMICS & MARKETS APR 21 – Federal Budget & global markets update   After a historical Federal Budget spending spree in 2020, what impact will the 2021 Budget have on the recovery? In this webinar Shane Oliver, Chief Economist & Head of Investment Strategy will give an update on the 2021 Budget:   12 May, 2021 By Dr Shane Oliver Head of Investment Strategy and Economics and Chief Economist, AMP Capital Sydney, Australia Important information While every …

The return of geopolitical risk? – what to watch over the remainder of 2021 | AMP Capital

The return of geopolitical risk? – what to watch over the remainder of 2021 Key points Geopolitical issues generate much interest but don’t necessarily have a significant impact on markets. But geopolitical risks are higher than prior to the GFC reflecting three big themes: a populist backlash against economic rationalist policies; the falling relative power of the US; and the polarising impact of social media. After a lull following the transition to President Biden, key …

US political protests, inflation and rising bond yields

US political protests, inflation and rising bond yields   Key points US protests are only an issue for investment markets if they significantly impact economic activity. Global and Australian recovery will boost bond yields and there is good reason to believe that (after yet another false ending) the now nearly 40-year super cycle decline in bond yields may be at or close to over. But the end of the bond bull market is likely to …