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.

Thursday, 4 June 2015

Low interest rates impacting

Savings ratio declines

The National Accounts for the first yesterday showed that low interest rates are forcing households to change their habits.

Cash in the bank is generating such a miserable yield.

Slowly but surely individuals are finding new ways to deploy their cash, into shares, real estate and elsewhere.

In fact, the latest data suggests that the decline in savings may not even be that slow.

The households savings ratio declined to its lowest level since the third quarter of 2008.

The drop off since March 2013 has been marked, with the ratio declining by close to a quarter.

In short, this points to rising asset values.


Some wicked data out later today - the Retail Trade report, and, my fave release, International Trade.