Pete Wargent blogspot

Co-founder & CEO of AllenWargent property advisory, 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

Tuesday, 7 August 2012

Reserve Bank will hold interest rates today

For reasons I discussed in a number of posts over the past couple of weeks (particularly here and here) the RBA will hold the cash rate at 3.50% in its meeting today.

With inflation fears having subsided - underlying inflation just sneaking under the targeted range of 2-3% and headline inflation far lower at 1.2% - unemployment low at 5.2% and GDP growing strongly at 4.3%, the RBA is in a comfortable position to sit back and assess how the recent interest rate cuts in May and June flow through to the economy over the coming months.

There has been some suggestion of increased activity in the housing market over the past few couple of months, with Sydney's auction clearance rate climbing steadily over recent weeks to its highest point in two years this weekend, reported at 68.4% by APM. Stocks look set for anther good day too, with the Dow Jones having broken through 13,100 overnight.

The main headache is the strength of the powerhouse Aussie dollar which is threatening to break out above 106 US cents as hopes of an interest rate cut have faded. While we tend to think of a strong dollar as great (for holidays it is), it is damaging to our exporting industries who are struggling to generate profits following the huge appreciation in the currency.

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It was great at long last to see a first individual gold medal for Australia via Gosford's Tom Slingsby on Day 10 of the Olympics overnight. But what an incredible performance by Team GB, now with a remarkable 18 gold medals to their name.