YOUR MONEY WITH TICKY FULLERTON FEATURING ROGER MONTGOMERY: 15 February 2019
Roger joined Ticky Fullerton to discuss the RBA’s recently revised growth forecasts from 3.25 per cent to 2.75 per cent and the impact on consumers. The recent declines in property have some people with negative equity which is resulting in less spending.
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.
David
:
In Western Australia the average consumer has been pulling back since the start of the mining boom, when prices across the board for necessities/utilizes increase significantly and regularly over a protracted period of time. Even as the mining boom slowed government charges & utilities still increased, that includes local council rates, water, electricity, car reg etc. These govt agencies are all on the bandwagon taking their turn and the normal citizens here are just sick of it and can’t risk spending their spare money freely due to concerns about which government agency will screw them next.
Commercial Real Estate agents are also to blame for the loss of business activity here in WA. They are happy to put the prices up for any reason, but when the market becomes oversupplied, if not saturated, with overpriced/rubbish listings they don’t want to be competitive with each other to sell it . Holding costs are not cheap for most of these properties, there are no real government or other incentives to start or run a small businesses here to sign up as a commercial tenant, so unless the local economy improves significantly here in the short term the writing is on the wall for a significant small commercial sell off.
Just my observations here in WA.
andrew ronan
:
I agree with you David, the last few decades have seen massive increases in the parasitic sectors of the economy which include government at all levels, and the financial services sector while the productive sector which includes small medium and large productive enterprises excluding the financial services sector, have suffered greatly due to massive increase in regulation and capital starvation.
People don’t realise that if the productive sector dies there’s nothing left to support the parasites, and that is precisely why we have stayed at emergency interest rates right the way through the housing bubble/boom, and now looking at zero interest rates and QE as stated by the RBA, and all we have heard that entire time is how great the economy is going. What more BS can these fools come up with to feed the sheep with. My guess is MMT which has even been mentioned here on this very site, why? Because it perpetuates the bubble economy and greatly benefits the skimmers and scammers in the financial sector and at great cost to the productive sector as can be seen throughout previous decades in all developed countries.
The end game of all of this can be seen many times over throughout history.
The parasites die with the host.
Theirs nothing modern about modern monetary theory.
Roger Montgomery
:
Thanks Andrew. You might remember this post from 2012: https://rogermontgomery.com/building-brand-australia/