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.

"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.

Wednesday, 1 February 2017

Commodity prices up 55.7pc

Bounce!

Preliminary estimates from the Reserve Bank of Australia (RBA) revealed another 5.3 per cent increase in commodity prices in January 2017.

This follows on from an upwardly revised gain of a massive 8.8 per cent in December.

The index is now up by a rollicking 55.7 per cent from January last year thanks to soaring coking coal and iron ore prices, and is up by 43.6 per cent in Aussie dollar terms.

Commodity prices therefore remain way above their historical averages.


Spot prices for the bulk commodities - essentially coal - have pulled back a bit lately.

But even so, this is an unprecedented year-on-year gain for Australian commodity prices on this index, at least in SDR terms (in Aussie dollar terms there was a wild increase in October 2008 when the dollar nosedived).


We'll have to wait until Thursday morning to find out, but some market analysts have forecast a record trade surplus for December, perhaps totalling as much as several billion dollars.

Given that as recently as December 2015 we saw a record deficit of some $4.3 billion this would be beyond extraordinary as a turnaround.