For over a decade, Australia’s housing prices were on the up. They soared higher, in absolute terms and in comparison to incomes, than Aussie real estate markets had ever been.
What if something more fundamental is going on that we don’t really know about yet? This is the scenario I’m leaning towards, and it all comes down to the poor performance of the emerging markets this year.
Growth is up. Spending is up. Savings are down. In fact, savings as a ratio of income is just 1%. Here’s some high-level maths for you; a person on $100,000 a year is saving just $1,000.
This week however, Turkey is at the forefront of economic minds everywhere. While the US dollar has strengthened this year, the Turkish lira has dropped dramatically. In fact, ABC News reports that it has dropped roughly 40% against the US dollar.
The Commonwealth Bank of Australia desperately needs to restore public trust and avoid negative publicity. This means splitting themselves up and creating a brand-new company called CFS Group. Will it work?
International currencies have all slipped against the US dollar. This means that global liquidity is tightening. So it's time to be cautious.
With trade war tensions escalating between the US and China, it’s surprising to see that Aussie stocks have powered ahead. Ironically enough, we have a falling Aussie dollar to thank for this.
The Reserve Bank continues to hold the official cash rate at 1.5%. What’s going on? Is this as good as it gets for the Aussie economy?
The smart money flow index has just plunged. There’s a risk that you’re going to see another leg down in US stocks very shortly. What will happen next?
If crisis hits again, people will flee the traditional system. They'll realise the current system isn’t as safe as they think. They’ll want something else. And crypto will be there, ready, waiting for them.