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Co-founder & CEO of AllenWargent property buyers & WargentAdvisory (subscription market analysis for institutional clients).
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Pete Wargent blogspot
Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), and CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).
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.
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"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'.
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Friday, 1 May 2015
May 5 interest rate cut is live
Rates to fall
Markets were distinctly unsure about an interest rate cut on May 5 at the close yesterday.
The implied yield curve continued to price in another cut in 2015.
And then Peter Martin released this via Fairfax Media:
"Concern about a deteriorating
economic outlook and a resurgent Australian dollar will force the Reserve
Bank to cut interest rates on Tuesday, taking the official cash rate to an
all-time low of 2 per cent and discounted mortgage rates to just 4.55 per cent.
The Australian dollar touched
US80¢ on Thursday, a level the Reserve Bank governor Glenn
Stevens has previously said was well above its fundamental value.
Among the concerns driving the
bank is a realisation that unless it cuts its cash rate on Tuesday, financial
markets will stop believing that it is prepared to cut and push the dollar even
Recall that on the Thursday before the February meeting (at which the Reserve Bank cut rates) Terry McCrann released this very similar piece.
Yesterday's media release moved market pricing and the Australian dollar dropped noticeably by nearly 50 pips, so markets clearly believe that the piece is very credible.