Just because rates have been at records lows doesn’t mean they can’t go any lower. For one, there’s the Aussie property market to think about. However, by looking at what the big banks are doing, we can glean what the RBA is likely to do in the future.
Right now, pass the cash parcel is in full swing, and central banks are only very timidly trying to reduce the size of the parcel. That’s basically why you’ve seen the US stock market rise unimpeded for the past two years. Central banks are behind the curve. There is too much cash in the system given the positive investor psychology that is unfolding.
The Aussie dollar is getting a boost from stronger commodity prices. Recent price rises have helped push the dollar higher. The Aussie dollar has had a strong start to the year. However, it may be more cyclical than anything to do with the underlying strength in the Aussie dollar.
There’s a strong chance that the US will never pay their debts back. In the past the only two ways a country would get out of such a mess is by strongly devaluing their currency. Such a move would end the US’s economic dominance. None of these outcomes is particularly good for anyone.
I’m all for tax cuts, but personal tax cuts are what needs to be on the table. And the issue of fairness needs to be addressed too. Society can’t function when the only people paying tax are honest middle-class workers.
In today’s piece, from 16 November, Ryan explains what ancient Chinese proverbs have to teach the modern investor. He looks at why interest rates are inevitably headed up in 2018, and both the good and bad things that could mean for your investments.
Today’s article was originally published on 17 November. At the time it was written, the bitcoin price was AU$10,287. Today it’s a lot higher. As you’ll read, money is changing. And global adoption is about to explode. You can’t ignore this…
As long as the big four can comfortably maintain their positions at the heart of Australian finance, it’s unlikely to change. There’s little competition for the big four, outside one another. But that comfortable position may not be as secure as they think.
Donald Trump’s long promised tax cuts finally passed. By reducing the corporate tax rate from 35% to 21%, Trump hopes to encourage US firms to repatriate capital and invest it at home. Tax cuts appease the right wing. Increased jobs and wages appease the working class. Everyone wins, right?
Earlier this week, Japanese stock market index Nikkei 225 saw their stocks decrease by 0.15%. What caused the drop?