26 Jun 2024
Market Metrics: Global Macro
- Posted by Dejan Pekic BCom DipFP CFP GAICD
As we close out another financial year, we all in our own way come to reflect on the past 12 months.
Was 30 June 2024 financial year a good year?
Yes, asset prices have increased but with investing one must keep looking forward.
We have attached growth, inflation and monetary policy expectation for five regions and the message is slow and steady economic activity.
Contributing to this slow and steady economic activity is increased investor liquidity with cash holding rising to US$5.98 trillion in the United States as at 1st April 2024 from US$4.68 trillion in 2020 or 28% according to the Investment Company Institute.
Click to read.
In the words of Benjamin Graham…’the essence of investment management is the management of risks, not the management of returns’… which is why remaining invested according to your appetite for volatility is key and when panic does take hold, react by buying more quality assets at discounted prices.
Our business is based on referrals, so if you have family, friends or colleagues that want advice please ask them to contact us.
18 Jun 2024
Disruptive Technology: Grandkids won’t learn
- Posted by Dejan Pekic BCom DipFP CFP GAICD
Waymo (which stands for a new way forward in mobility) continues to expand autonomous taxi services in the United States.
It is not perfect but it is operational right now and it is being used.
This will not just negatively impact new people applying for a driver’s licenses, it will also eventually eliminate an estimated 730,000 Australian transport, postal and warehousing employees.
Click to read.
Yes, AI (Artificial Intelligence) is at an ‘inflection point’ and yes this is going to allow investors to tap into trillions of dollars of investment opportunity but it is difficult to foresee what employment role if any humans will play after this transition.
Our business is based on referrals, so if you have family, friends or colleagues that want advice please ask them to contact us.
6 Jun 2024
Australian Residential Property- Undersupply
- Posted by Dejan Pekic BCom DipFP CFP GAICD
Residential property prices (especially Sydney) just keep increasing and are at record highs.
|
Capital City
|
Annual Change %
|
Change from Peak %
|
| Sydney |
7.4
|
0 |
| Melbourne |
1.8
|
-4 |
| Brisbane |
16.3
|
At record high |
| Adelaide |
14.4
|
At record high |
| Perth |
22.0
|
At record high |
| Hobart |
-0.1
|
-11.5 |
| Darwin |
3.5
|
-5.3 |
| Capital City Avge |
8.8
|
At record high |
| Regional average |
6.8
|
At record high |
| National average |
8.3
|
At record high |
| Source: CoreLogic, AMP |
|
|
|
|
|
|
|
You can see from the attached that median residential property prices are about $800,000 but buying capacity in only in the $400,000’s. We have not seen this level of disconnect since the 2008 GFC (Global Financial Crisis).
Click for chart.
If the Federal Government wants to stop further steep rises in residential property prices then we need to build.
Building more residential property (increasing supply) brings economic benefits but it takes years to deliver supply of new residential property.
Our business is based on referrals, so if you have family, friends or colleagues that want advice please ask them to contact us.
