Podcast 16: Are we heading for a debt trap?

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The government’s policies have been focused on spending and encouraging Australians to borrow more, driving strong credit growth. The impact of this approach is that the more indebted Australian’s are, the harder it is for the RBA to increase interest rates. Darren Langer and Chris Rands discuss whether Australia could fall into a potential debt... Read more continue reading

CPD: Six reasons to not worry about inflation

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It’s that time in the cycle again. US bond markets and commentors are worried about inflation. But with US unemployment at 6.2%, should this be a concern? Before we begin, let’s define what we are actually discussing. Rising prices are a pre-condition for what we define as inflation; but this isn’t the only condition. Inflation... Read more continue reading

Podcast 15: Is the free ride over?

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The RBA’s stimulus policies have boosted the economy post COVID-19 driving increases in house prices, retail sales, and employment but is this a double-edged sword? Darren Langer and Chris Rands discuss the impact of the RBA’s policies on future growth, and question who will pay for it in the long run in episode 15 of... Read more continue reading

Podcast 14: What’s driving interest rates higher?

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Bonds experienced their fastest sell off since 2009, resulting in the largest one month rise in 10-year yields. Given the economic outlook is looking more positive globally, is the rise justified and where to next for bond yields? Darren Langer and Chris Rands delve into these questions and more in episode fourteen of The Rate... Read more continue reading

Podcast 13: Could housing be the good news story for 2021?

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Everyone loves a good housing story and it’s looking like 2021 could become a best seller. But at what cost? According to the numbers, we’re still in an economic hole, and with immigration down 80% and the government’s income support program about to end, are we setting ourselves up for a down fall? Darren Langer... Read more continue reading

Credit market valuations imply improved fundamentals in 2021

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High-yield corporate bond and floating-rate loan markets ended 2020 on the up, with a strong rally following news of vaccine efficacy in November. The loan market closed the year with a 3.1% total return, while the bond market was up just over 6%, aided by higher sensitivity to falling interest rates. “Default rates rose throughout... Read more continue reading

Podcast 12: Could house prices top 20% growth in 2021?

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If anyone questioned the power of low interest rates to drive house prices in Australia, they only need look back at 2020. Despite COVID-19, the recession, high unemployment and stagnant wages growth, house prices in Australia stood firm. Find out why Darren Langer and Chris Rands believe house prices are set to climb and why... Read more continue reading

RBA eschews further monetary stimulus – where to now?

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Not surprisingly at yesterday’s Board meeting the RBA eschewed the application of any further monetary stimulus following the announcement of a comprehensive array of measures in November. However, it reiterated that the likelihood of an uneven recovery and a concern about ongoing high unemployment and associated subdued wage growth would mean that policy settings remain... Read more continue reading

CPD: MMT – Free lunch or road to perdition?

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The following article is authored by two investment luminaries from Epoch Investment Partners: William W. Priest, CFA — Executive Chairman, Co-CIO and Portfolio Manager Kevin Hebner, PhD — Managing Director, Global Investment Strategist. The article explores modern monetary theory and whether it’s the saviour of the economy or a pathway to economic damnation. Proponents of... Read more continue reading

Podcast 11: The RBA finally unleashes the bazooka

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If the RBA cutting rates is the entrée for markets this week, then the outcome of the US election is the main course and dessert rolled into one. Tune in to hear Darren Langer and Chris Rands dissect the big picture for global markets and find out why fixed income makes so much sense right... Read more continue reading