With the 2016/17 financial year behind us and the calendar year half way through, it's time to reflect on what’s ahead. The regulators have now acknowledged that we are in an Australian east coast property bubble compared to the rest of the world. The big question now is ... how will it end?
Do we have a 'bubble burst’ effect or an extended period of slow growth where property remains static for some time? With wages growth at an all-time low, it’s hard to see how we can continue along the same path of high growth.
The Banks are lifting rates independently of the RBA which has no reason to do so in the foreseeable future. The Aussie dollar is now climbing faster than the RBA wishes and this will impact our tourism market but help our imports. Speaking of imports, it looks like Amazon is about to crash our retail party by setting up shop in Australia. No one can deny the success of the Amazon model. In fact, if you bought $1,000 worth of shares in Amazon when it listed back in 1997 you would now be sitting on around $500,000.
This month Ashley Owen from Stanford Brown discusses the good reasons why Amazon and Warren Buffett don’t pay dividends and what it means for growth. We also look at the Nasdaq reaching 6000 for the first time and three big money risks in retirement. We wish you a happy start to the new financial year. Kind Regards Michael
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