Recession and Financial crisis indicator

Yup if Trump could take the white house, anything really is possible.

Whilst all the rate rises and economic news is being talked about, a more concerning thing is the escalation of Trump vs. China.

Also the COMMIES not only have shiny new nuclear subs patrolling the high seas, they have started covert encroachment on international waters. China Deploying Weapons on Artificial Reefs, Think Tank Says

A bit off-topic but should things escalate and there be a cold war or trade tariffs on China, trade with China could come to a standstill, that would be terrible for our economy, not to mention we might have to side with our allies in USA/UK resulting in more conflict with China.

But perhaps an American infrastructure boom could once again make us the lucky country

 

I think this may be in line with @sash views

 

Anything is possible......BTW Trump met with the giant US tech billionaires today, most actually voted against him, times are changing though. IMB has committed $1 billion back into US, more jobs.
Also Feds put up interest rates.... not quite sure how this will impact on Oz property, perhaps someone can shed light on this

mtr

 

But not probable.

 

If anything is possible, then it is possible that Australia will avoid sliding into recession. Is it possible? Yes. Is it probable that Australia will avoid a recession? No.

Then should we plan for the possible - Australia avoids a recession?

or should we plan for the probable - Australia does not avoid a recession?

Which do you think it is smarter to plan for?

 

Notice quite a number of threads on PC regarding concerns/risks about our economy? interesting

Before someone tries to beat me over the head with a rubber mullet, I only started 1 thread..time to be cautious

 

its the interest rate rises that's got investors spooked. everyone was kinda expecting for RBA to go negative rates, property prices to double and the economy to go gangbusters again...

 

Yep agreed, interest rate rises and people get excited.

 

That and negative economic growth. In WA we are already in a recession. I am not particularly bothered by this but it makes me cautious, as it should. It would be foolish to continue on as before, ignoring the fact we ate now in a recession.

 

Cautious? Forget being cautious, this is what we're waiting for. Bring on higher interest rates, negative sentiment, recession.
Let the **** hit the fan, as long as you can hold hold hold and have a secure income throughout. This is it, get excited as it's nearly time to make some serious cash.

 

Exactly. Nearly time, not time. Until then, be cautious!

 

Where in Perth are you focusing Barny?

 

..yes interest rate rises is one of the drivers

really, I must be missing something

so you make money because you buy when markets tanked but it means you are waiting at least 7-10 years for growth. That's Ok, however it is way better to buy in boom double your money in 2-3 years. All to their own

 

If only our pollies follow the same path, then Australia will be back or great again.

But sadly it's the other way around:
Proportion of Indian IT workers on 457 visas on rock bottom pay triples

Local workers losing Geelong jobs to 457 visa holders, union claims

iTWire - Surge in foreign IT workers entering Australia, Aussies struggle to find jobs

 

A deal maker, a deal a week, this is exciting stuff

 

Not in perth Davey, looking to purchase one more property in melb but not yet. When I get a discounted price, if and when it happens.

 

Looking for a ppor so this next purchase doesn't need to be timed perfect, as long as I buy it at a discounted price from today's waaaay overpriced hot market.
Agree that it helps if you purchase when the market starts moving. I also do not believe the next 7-10 years will be anything like the previous 20+ years of growth we had prior with easy credit.
No chance, unless lending relaxes again.
I think buying in any area and sitting on property trying to achieve similar returns of the past will disappoint most.
So one more purchase and I'm done with property for ages, moving and diversifying to shares now as I see better returns

 

you could be right about lending??? who knows.

I started investing when we had lo doc/no doc product....as long as markets were booming we kept buying no need to service debt, oh those were the good days. Same, I recall people saying you will never get these booms again.

Not so, banks changed policy and they cut lo doc/no doc pretty much over night, many felt the pain, but nothing has changed in terms of property cycles, and I expect they are here to supply, it will always come back to supply vs demand and there are so many entry levels etc.

MTR

 

US rates up 25 basis points....banks in OZ raising rates out of cycle....bank growth rate of net income at less than 2%......interesting times indeed...watch Sydney...........

I just fixed a lot a couple of loans 4 weeks ago... 70% of my portfolio at rates of 3.89, 3.99 or 4.29%........going to cash.....building a mini arc it case it rains.