Pete Wargent blogspot

Co-founder & CEO of AllenWargent property advisory & buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place) - clients include hedge funds, resi funds, & private investors.

4 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he is one of the better property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete Wargent is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data and charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, and author of the New York Times bestsellers 'End Game' and 'Code Red'.

"Pete's daily analysis is unputdownable" - Dr. Chris Caton, Chief Economist, BT Financial.

Invest in Sydney/Brisbane property markets, or for media/public speaking requests, email pete@allenwargent.com

Friday, 15 June 2012

No parity party this time...

As I mentioned in my post here, there is every chance that due to foreign investment in the new 'safe haven' that is the Aussie dollar, the exchange rate with the US might stay at historically high levels for some time, in spite of a raft of interest rate cuts since late 2011.

Sure enough, today the Aussie dollar finished the working week back above parity at US$1.004.

Interesting to remember all the silliness of 3 and 4 November 2010 when the financial talking heads were making dopey remarks about us holding "parity parties" as the dollar appreciated above US$1.00.

More sensibly, partying has barely rated a mention this time.

From a purely selfish point of view the strong dollar has been marvellous - having travelled to 25 countries in the last 18 months, I can confirm that it has never been better to be a travelling Aussie!

As so often in life, though, there is a trade-off.

Exporters have had very rough couple of years (cf. the long, slow demise of BlueScope Steel, and the domestic tourism industry must surely have suffered - at least, judging from the relatively small gathering of Barmy Army at the Ashes last time around).

Despite what we like to believe, Australia is fairly heavily reliant on foreign investment, particularly from Asia.

The share market is still lacklustre with the XJO (ASX 200) threatening to dip back below 4,000. And property is gradually sliding downwards in most areas too.

A strong dollar discourages foreign investment - foreign investors receive less value and introduce foreign exchange risk to their investments.



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Have only been living in Sydney CBD for 72 hours or so, and have already nailed two celebrity spots.

Kochie with umbrella (Elizabeth St.) on Wednesday, on his way to Channel 7.

And today, the ginger chap with the odd name 'Chit Chat' from TV music channel MAX (Cnr Elizabeth/Market). Does he count as a celebrity - it's hard to say these days?