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).

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 is 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 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'.

"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 of the world's most popular & widely-read financial publications.

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

Tuesday, 30 December 2014

Super News! 2015 ASX Close...

Stocks to Finish in the Black...Just

The penultimate ASX trade for 2015 saw share markets close in the red and down by around ~1 percent reversing much of the previous day's gains (the market closes early today at 1410 hrs).

Despite a rally at the end of the year, the ASX benchmark index closed only 1.2 percent higher for the calendar year to date.

No doubt this will be used as ammunition for more "doom and gloom" headlines!

However such pieces are often deliberately disingenuous. 

The plain facts are that the XJO (ASX 200) closed at 5416, thus generating returns on an accumulation basis (inclusive of dividend returns) of a solid if not spectacular 6.8 percent for the calendar year so far.

This means that any managed superannuation fund worth its salt in 2015 will have recorded another positive year, adding further to record total Australian household wealth.

Beneficiaries from the "quest for yield" this year have included Telstra (TLS) which recently hit a 13.5 year high breaching $6/share, and the major banks. 

5 year returns for superannuation balances should also be solid despite the dip experienced by many global share market indices through a wobbly 2011.

Record Household Wealth in 2014

The good news for Australian households is that this will push aggregate household wealth to new record levels at the end of 2014.

The Q3 2014 Household Finance and Wealth figures (analysed here) already showed that household balance sheets retained a record net worth of $7,718 billion, a massive 51 increase on the financial crisis lows of March 2009 ($5,107 billion).

Even in per capita adjusted terms, these represent very impressive gains.

The purple "net worth" line shows how household wealth had been increasing at an unsustainable quarterly pace of a massive 2.7 percent in the 8 years leading up to the financial crisis, miles ahead of the 1.8 percent pace seen 1994-2000.

A correction through 2008 put the upwards trajectory back onto a more sustainable course.

Interestingly the growth in household wealth in recent times has not all been driven by house prices, contrary to what the popular media might have us believe.

Further, the ratio of household debt to assets has declined moderately since peaking in March 2009, which is good to see.

Read more here