Economics

Australians are getting used to super-low interest rates, and eye-watering loan amounts, particularly for property purchases. Along the way, the household debt burden as a percentage of disposable income has ballooned out from 170% to 185% since 2008. This is nosebleed territory. Is it time to be concerned? We think so. continue…

by Roger Montgomery Posted in Economics, Editor's Pick, Property.

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It’s not news to anyone reading the Insights Blog here that bond rates are at record-lows.  And it should be no secret that US stocks are summiting record highs. But it shouldn’t be happening and it isn’t logical.  continue…

by Roger Montgomery Posted in Economics, Market commentary.

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After the RBA’s latest cut to official rates, many investors will be tempted to take some of their money out of cash in pursuit of the high dividend yields offered by our banks. But are these yields sustainable as the banks feel the squeeze from margin pressure and increased liquidity requirements? continue…

by Stuart Jackson Posted in Economics, Financial Services.

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The record low interest rate environment is seeing investors buying speculative grade corporate debt and extending maturities to generate positive yields.  The rewards are becoming increasingly unsustainable given the level of risks. continue…

by David Buckland Posted in Economics, Market commentary.

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When Michael Stipe of REM wrote The End of the World as We Know It and penned the lyrics, “A tournament, a tournament, a tournament of lies, offer me solutions, offer me alternatives, and I decline.” He wasn’t thinking of the 2016 US Presidential Elections nor the resistance of consumers to lower and lower interest rates but he may as well have been. continue…

by Roger Montgomery Posted in Economics, Insightful Insights.

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Following my blog entitled “The Next Economic Disaster” I thought it worthwhile exploring why Central Banks aren’t succeeding in their sworn fight against deflation.  continue…

by David Buckland Posted in Economics, Insightful Insights.

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At its meeting today, the Board decided to leave the cash rate unchanged at 2.0 per cent. Recent information suggests that the global economy is continuing to grow, though at a slightly lower pace than earlier expected. While several advanced economies have recorded improved growth over the past year, conditions have become more difficult for a number of emerging market economies. China’s growth rate has continued to moderate. continue…

by Roger Montgomery Posted in Economics.

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While the world tries to guess when the Federal Reserve will increase interest rates, we thought one of the more eloquent illustrations of the conundrum facing central banks is a recent speech by Andrew Haldane, the Chief Economist of the Bank of England. The speech is aptly entitled, Stuck. continue…

by Ben MacNevin Posted in Economics, Insightful Insights.

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For a firm to grow in value, it must earn returns in excess of its cost of capital. Typically we expect that firms will achieve this by developing a competitive advantage difficult to replicate by competitors and exploiting said advantage for all it’s worth. But what if the firm has no competitive advantage? continue…

by Scott Shuttleworth Posted in Economics, Insightful Insights.

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In this interview with Ross Greenwood on 2GB Money News, Roger talks with Ross about the leadership changes, what conditions we need for economic growth for Australia and shares his views on supporting small business.

Click here to listen to the radio clip.

You can listen to any of Roger’s radio interviews through browsing our media library, listen to more clips here.

by Roger Montgomery Posted in Economics, Insightful Insights, Market commentary.

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