You might care to note that stocks in the US are trading at all-time highs. This looks very bullish for both the US and the world.
You can apply this line of thinking to the Australian real estate market. Governments do everything they can to protect this market.
Shares of St Barbara Ltd [ASX:SBM] gained more than 5% today as the stock continues to rebound from a recent slump. It closed at $2.64. It’s now up 70% for the year.
The negative-gearing debate could flare up again after credit figures showed that investor property loans are surging. Owner-occupier statistics are flat.
Money is going in to buy the juiciest of the Greek property assets. There’s plenty up for grabs when a country is bleeding like Greece was.
You won’t believe me when I say these toys are a clue for your investment strategy. But they are, because they’re the hottest toy in the US right now.
The average new car has 616 chips in it. In 2013 there was an average of 550. That’s a value of US$350 per vehicle this year, up from US$250 in the year 2000.
Now we have a real estate President in charge who wants to drop property taxes and lift regulations off the financial sector. This cycle is really rumbling now. There’s a boom brewing.
If you’re scratching around for a reason why the Australian share market just can’t get hot, maybe this is it.
The more credit goes into property and shares, however, the higher asset prices will go — but the 'bubble' economy will become more fragile.