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, 9 May 2013

RBA releases its May chart pack - interesting reading

The RBA charts - always make for an interesting read!

Household saving ratio - remains way above where it was during the great leveraging:

Household Saving Ratio graph

Household finances - debt levels levelled off many years ago now. Interest payments have fallen significantly as rates have moderated:

Household Finances graph

Consumer sentiment - a blip, but well above the long-term average:

Consumer Sentiment graph

Housing loan approvals increasing strongly in total, but, as expected, not for first home buyers at this point:

Housing Loan Approvals graph

Retail sales growth - promising trend:

Retail Sales Growth graph

Dwelling prices - strengthening in Sydney and Perth. Very flat for years in the regions:

Dwelling Prices graph

Household wealth - chart tells its own story:

Household Wealth and Liabilities graph

GDP growth remains OK at around 3% at this point. Potential for it to weaken as the mining investment boom fades. Could result in further interest rate cuts.

GDP Growth graph

Inflation, smack in the middle of the target range at 2.5%:

Consumer Price Inflation graph

Commodity prices have weakened. Expecting iron ore price to fall, which could also add to the case for further rate cuts:

RBA Index of Commodity Prices graph

Interest rate now low at just 2.75%:

Australian Cash Rate graph

Bond yields, ummm...

Australian Bond Yields graph

Share prices - as expected, it's the financial sector which is up and running (not resources):

Australian Share Price Indices graph

Aussie dollar still too high for liking against the USD - could also mean low interest rates:

Australian Dollar Against US Dollar, Euro and Yen graph

Labour productivity - much stronger than the press would have you believe:

Labour Productivity graph

Wages growth trend - above 3% for both public and private sectors:

Wage Price Index Growth graph

Unemployment remaining well under 6% - but more on this later...!

Unemployment and Participation Rates graph

Source: Reserve Bank of Australia