Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), & CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

5 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's one of the finest property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete 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 & charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, author of the New York Times bestsellers 'End Game' & 'Code Red'.

"The level of detail in Pete's work is superlative across all of Australia's housing markets" - Grant Williams, co-founder RealVision - where world class experts share their thoughts on economics & finance - author of Things That Make You Go Hmmm, one of the world's most popular & widely-read financial publications.

"Wargent is a bald-faced realty foghorn" - David Llewellyn-Smith, 'MacroBusiness'.

Wednesday, 3 August 2016

Commodity prices jumped in July

Commodities rebound

While everyone was busily watching the interest rate decision, the Reserve Bank of Australia released its Index of Commodity Prices for July, which showed a 4.1 per cent jump in the month. 

Australia's key commodities are iron ore, coal, and increasingly LNG (which means that depressed oil prices are really a negative for Australia, despite cheaper fuel prices for consumers). 

The iron ore spot price has moved more than 40 per cent higher year-to-date, although to date the bulk commodities index based on export price movements hasn't rebounded so strongly. 

In SDR terms, the commodities index jumped 4.1 per cent higher in July. Using spot prices, the index tore 8.3 per cent higher in July, to be 3.5 per cent higher over the year. 

In Aussie dollar terms the index rose by 1.1 per cent, having increased by 3.6 per cent in the June quarter. 

A nice bounce over the last seven months - with the index in Aussie dollar terms up by 8.3 per cent over that time - which would be great if sustained. 

There is still a lot of downward pressure on iron ore and oil prices, though.