Author Archive | Ashley Owen

Government debt

Government debt: how much is too much?

The level of Commonwealth government debt to GDP is the highest it has been since the 1950s, and it’s only likely to worsen in the face of populist policies. Is this something we should worry about?

high-rise

Risks to banks at end of construction boom

Australian banks are vulnerable to a collapse in the local housing market due to an overexposure to high-rise developments, interest-only loans and high loan-to-value ratios. The main uncertainty is the timing.

PX-wall-st-sign-nyc

The Dow hitting 20,000 and what it hides

Investors celebrated when the Dow broke through the 20,000 mark last month, but in real terms, it’s a more sobering picture. Australian stocks in particular are struggling to reach their previous heights.

vote-usa

Investment implications of Trump presidency

President-elect Donald Trump divides opinion, and there is no way of knowing whether the rhetoric that won him the top job will translate into action. Here’s a quick look at some implications.

US shares

US shares at new highs, but where’s Australia?

Since the 1900s, share market returns for US and Australian investors have been similar over the long run, but lately, US shares have outperformed with the current tech boom. How about +66% versus -2% since 2007.

house prices

Australian and US house prices remain firm

Increases in Australian house prices are slowing but there are many reasons for an underlying support, but some locations for apartments will not do as well. Housing recovery continues in the US.

export revenue

Britain, Brexit and Australia

Britain is less important to Australia as an export market than it has ever been, reducing the impact here of any short-term Brexit disruption. It’s possible that Britain will benefit from Brexit as a new sense of independence encourages spending and employment with less external interference.