Australian Economy

The Australian economy set a world record in March 2017. Recession free for nearly 26 years. Around the same time, Australian households also established a record…the most indebted in the world.

The Australian economy was a major beneficiary of China’s decades long economic transformation. Chinese demand for resources led to a mining boom that peaked in mid-2012.

When the mining boom collapsed, the Australian economy was thrown a lifeline by the RBA…in the form of ever lower interest rates. Australians were encouraged to borrow to keep GDP growth positive.

While this has worked to an extent, it’s also lead to Sydney and Melbourne property markets becoming amongst the most expensive in the world.

Australian Economy News, as it comes

In Markets & Money we work to connect the dots on the Australian economy to give you a clear picture. And part of that picture is connecting record economic growth with record debt, and record home prices.

Aussie retail
Your Country Needs You to Start Spending
Aussie retail is in trouble. And the trouble has nothing to do with Amazon setting up shop in Australia. Yes, retailers are up against falling prices. Yet, thanks to the internet, you can wait it out until they offer you a price that suits you. Aussie retailers now have massive international chains to compete with.
wealth at risk
The Health of Your Wealth Is at Risk
The global economy’s absolute dependency on central bank stimulants for growth has created the illusion of strength. But, in reality, it’s weakened the system to the point where our financial wellbeing is highly vulnerable to even the slightest of economic ills.
interest rates cut reserve bank of aus
The RBA Just Spilled the Beans on Interest Rates in 2018
The RBA can talk about business activity all it wants. Yet, at the end of the day, it all comes down to how Australian households would cope with a rate increase. One that banks would almost certainly pass on to mortgagees. In effect, the RBA has told us what to expect.
Amazon in australia
Amazon to Decimate the Aussie Market? No Chance…
Here in Australia, though, it’s a little different. I won’t dispute the fact that many of our large retailers have a woeful online presence and process. But Amazon isn’t piggybacking a captive audience. The tech behemoth will need to roll up its sleeves and get its hands dirty to win over Aussie shoppers.
Amazon Is Entering Australia Blind
The Australian market is not going to be an easy one to infiltrate. If Amazon hopes to fulfil their promise of fast, accurate deliveries, they will need the help of Australians themselves. One local company, in particular, has just the thing they need.
ASX hike after interest rates on hold
No Rate Rise Pushes ASX Higher
How the ASX reacts from here will be interesting to watch. Low interest rates for the foreseeable future could mean more investors flooding into the market, hoping to seek out returns.
aussie market
Where Are the Exits?
Investors simply aren’t worried about anything. Which means the market isn’t priced for any kind of worrying event. When you get such pervasive optimism, it is indeed a time to be worried.
Myer MYR
Myer and the King of Retail
Last week, Myer chief executive Richard Umbers announced to the market that same-store sales fell 2.1% in the first quarter of this financial year. Two years into Myer’s much hyped ‘turnaround’ strategy, things aren’t looking good. But Umbers only had more bad news for the market.
investing in blockchain
Ditching Blue Chips for Computer Chips
When you whack money into blue-chip companies on the ASX, you’re pretty much buying the exact same shares as everyone else in Australia — banks, miners, telcos supermarkets and insurance companies. Snore. However, some incredible small start-ups are so tiny that you might miss them.
Investing in Technology
The Future Fund Sees Value in Tech Giants
Thanks to forced superannuation, we have a pension pool of more than $2.3 trillion.  According to Wills Tower Watson’s 2017 Global Pension Assets Study, it’s the fourth largest pension pool by assets in the world. So where are your savings being invested?