Retailers could soon feel the heat from a cooling property market
Recent reporting season results tell a story of falling property prices and rising indebtedness. This is starting to hurt property speculators, lenders and builders, and could soon impact many retailers due to the negative ‘wealth effect’ on consumer sentiment.
In keeping with our recent property market discussion, I thought it might be helpful to tease out a couple of reinforcing data points from the current ASX reporting season.
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.
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.
Andrew
:
Hey Roger,
I think you meant to say:
“Tightening credit conditions are generally not a positive sign for real estate prices or consumption.”
Great article.
Andrew.
Austin
:
Hi Roger,
Thanks for the insightful post! Would you be digging deeper into this subject and include your thought on the results from companies such as Credit Corp and Afterpay etc?
I have seen Credit Corp loan book kept increasing and Afterpay late fees were enormous!
Consumer Loan Book are growing so rapidly to a point that an amateur investor like me could not understand what would happen next… Would really appreciate the insight from your team!
Regards,
Austin
Roger Montgomery
:
Hi Austin, we recently shared some thoughts on the subject: https://rogermontgomery.com/the-market-loves-afterpay-but-how-long-will-the-euphoria-last/
Of course, as is often the case with voting machines, the stock has risen since.