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 …
Econosights: What are inflation expectations telling us? Key points An increase in short-term consumer inflation expectations reflects the current high inflation environment. While consumers are assuming that inflation will remain elevated at its current level for the next 1-2 years, this is unlikely as forward-looking inflation indicators have been falling for months. Australian medium-term inflation expectations remain well anchored which indicates that the market believes in the RBA’s 2-3% inflation target and does not …
Australia’s new Government – what does it mean for investors? Key points The absence of significant macro policy differences between the new Labor Government and the Coalition suggests minimal impact on the share market & the $A. There could be some short-term uncertainty if Labor has to rely on minority parties or independents, but its looking like Labor will be able to govern in its own right. The key economic challenges for the new Government …
The RBA starts raising rates – how far and how fast? And what does it mean for investors? Key points The RBA has hiked the cash rate by 0.25% taking it to 0.35% and signalling more rate hikes ahead. We expect the cash rate to rise to 1.5% by year-end and to 2% by mid next year. But the RBA will only raise rates as far as necessary to cool inflation and high household debt …
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 …
7 tips to improve your financial wellness What is financial wellness? How you feel, is your wellness. How you feel about your money is your financial wellness. This can be measured by the financial wellness index, which measures a person’s satisfaction with their current and future financial situation. The impact of financial stress Some days you might feel confident you can meet your needs within the boundaries of your current income, whereas other days you …
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; …
5 big picture implications of the war in Ukraine of relevance for investors – and why are Australian shares holding up better? | AMP Capital 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 …
US faces stiff headwinds in 2022 What happens to interest rates locally and globally is always important for investors, but particularly so at turning points in the economy. And notwithstanding the recent Omicron outbreak, the world’s most influential central bank, the US Federal Reserve, looks likely to lift interest rates as early as March. It would be the first increase in more than three years and marks a significant turning point in the global economic …
