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Key Points The gold price has surged to record highs. Key drivers have been central banks increasing their gold reserves, rate cuts, a renewed downtrend in the $US and demand for a hedge against public debt worries and geopolitical threats. While gold is short-term overbought,...
Key Points Australia is seeing a gradual economic recovery with growth likely to reach 2.5% next year. This in turn is underpinning a likely upswing in profits. The RBA is expected to cut again in November, February and May to 2.85%, although the risk is...
Key Points Compound interest is an investor’s best friend but can be a borrower’s worst nightmare. The higher the return, the earlier and bigger the investment contribution and the longer the period the more it works. To make the most of it, ensure an adequate...
Key Points The RBA cut its cash rate by 0.25% taking it to 3.6%. This is the third rate cut in this easing cycle. The RBA sees inflation running around target but has revised its growth forecasts down again. Its forecasts assume that the cash...
Key Points The last decade has seen productivity stagnate in Australia. This has curtailed growth in living standards and real wages. Policies to boost productivity include: deregulation; more housing supply; a cap on public spending; and tax reform. Unfortunately, the political pendulum has moved against...
Key Points The Australian housing market remains far more complicated than many portray it to be. The Australian housing is cycle is turning up again; falling interest rates are the key driver; along with a chronic undersupply of homes of 200,000-300,000 dwellings; this partly reflects...
Key Points While recession fears, worries about US tariffs and war with Iran resulted in volatility, 2024-25 saw another financial year of strong returns helped by central bank rate cuts, economic conditions proving better than feared, and as President Trump paused the worst of his...
Key Points The US intervention in the war with Iran has substantially increased the risk of disruption to global oil supplies and a deeper impact on share markets. But predicting how this will all unfold is hard. The key is to stay focussed on the...
Key Points So far, the Israel/Iran war is limited, and various constraints suggest it may stay that way with Iran reportedly wanting to return to talks. It’s still early days though and so the risk of an escalation threatening oil supplies remains significant. Current oil...
Key Points US tax cuts point to ongoing budget deficits around 7% of GDP, a rising trend in already very high public debt and a further rise in already record debt interest payments. While a full-blown US public debt crisis is unlikely, this along with...