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

Thursday, 8 November 2012

Jargon-busting: "the US Fiscal Cliff"

A term that has wormed its way into financial lexicon of late: "the US fiscal cliff".

The fiscal cliff refers to the simultaneous expiry of tax breaks with the introduction of tax increases and spending cuts at the end of 2012, the cumulation of which could push the US back into recession.

Here's what the pink pages of London's trusty old Financial Times has to say about the possible problems (particularly note the last part I have put in bold):

"Among the fallout – if Congress fails to take any action before December 31 (2012) – is a significant increase in taxation on investment income, with tax rates on capital gains increasing from 15 per cent to 20 per cent, and tax rates on dividends rising to 39.6 per cent for top earners.

Adding a 3.8 per cent surtax on investment income for the wealthiest Americans – those with adjusted gross income (AGI) of more than $250,000 for joint filers and $200,000 for single filers – was part of the 2010 health reform law and takes effect in 2013.

It means tax rates on capital gains would rise to 23.8 per cent, while those on dividends would increase to 43.4 per cent for the highest earners.

If Congress take no action by January 1, the US will be hit by a fiscal contraction worth $600bn in 2013, which could tip the economy into a new recession.

The fiscal drag results from the expiry of a series of Bush-era tax cuts, as well as the entry into force of automatic cuts to defence and domestic spending programmes.

At roughly the same time, US lawmakers will have to raise its borrowing limit, or face the risk that the country could default on its debt."