How will the interest rate cut affect Housing prices?
Learn Roger Montgomery’s Value.able insights into the latest 50 basis point cut in the the base rate and how it may impact housing prices in this interview with ABC The Business’ Ticky Fullerton broadcast 2 May 2012. Watch here.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
He is also author of best-selling investment guide-book for the stock market, Value.able – how to value the best stocks and buy them for less than they are worth.
Roger appears regularly on television and radio, and in the press, including ABC radio and TV, The Australian and Ausbiz. View upcoming media appearances.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Chris W
:
I can talk for a while about banks but maybe the main thing I want to say is that there isn’t a lot of competition but there is a tradeoff between having a stable banking sector and having an instable one that lends out to anyone and chases potential profit, as soon as a recession hits, it really screws up the economy. We have 4 major banks for 21m people, we have 2 major supermarkets, 3 telco’s. I think 4 banks is better than 2 or 3 or even 6. With 6 you’d have banks chasing profit and lending out to people that won’t pay off the loan. i know that Australia isn’t the place for innovation, because banks don’t have the staff who are good at identifying startup companies that are potential great companies. But at least we are stable. And about banks not passing on the full RBA cut, they don’t lend totally from the RBA so they can’t cut rates exactly the same as the RBA.
I will continue to hold banks, I see them as very stable and like a bond, they are paying a decent divident. Analysts are telling people there isn’t much growth in banks but at least they are more stable than most stocks. I hold a small amount in banks and I will continue to hold them because they are stable. Don’t listen to analysts, Warren Buffett as said this so many times. Banks have a competitive advantage and they pay a decent dividend, they are stable.