Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

'Huge fan of your work. Very impressive!' - Scott Pape, The Barefoot Investor, Australia's #1 bestseller.

'Must-read, must-follow, one of the finest analysts in Australia' - Stephen Koukoulas, ex-Senior Economics Adviser to Prime Minister Gillard.

'One of Australia's brightest financial minds, must-follow for accurate & in-depth analysis' - David Scutt, Business Insider.

'I've been investing 40 years yet still learn new concepts from Pete; one of the finest young commentators' - Michael Yardney, Amazon #1 bestseller.

'The most knowledgeable person on Aussie real estate - loads of good data & charts...most comprehensive analyst I follow in Oz' - Jonathan Tepper, Variant Perception, 2 x NYT bestseller.

Friday, 29 May 2015

Pound on fire!

Sterling effort

I've made the point on this blog previously that UK assets might be worth a look for investors, partly as a currency play.

It's a strategy I've been using myself, buying UK assets while the Aussie dollar has been hugely strong against the pound, at least in historical terms.

I hadn't realised the returns would be so swift, though.

Just look at the British pound go, now up to a 6 year high against the Australian dollar!

Yesterday's weak capex data in Australia, which I looked at here, paves the way for further easing in Australia and sent the pound to above A$2.00.

Futures markets are getting somewhere close to pricing in another interest rate cut by the end of 2015 in Australia, with weak investment figures suggesting rising unemployment.

The Reserve Bank is widely considered likely to wait for some time before moving again, however.

The Reserve Bank has made the point on many occasions that it would like to see the Australian dollar weaker against the US dollar, which would help our commodity export prices.

Slowly but surely, we are seeing that too, with the Australian dollar declining to around 76.5 cents from previously heady levels of well above parity.