Friday, February 5, 2021

Housing market "more resilient than expected" in covid crisis says RBA governor Philip Lowe

The governor of the Reserve Bank has warned that financial regulators will move swiftly if there's any sign of a dangerous real estate bubble developing in parts of Australia.

Philip Lowe says there are no alarm bells ringing just yet, but he'd told a parliamentary committee that regulators are monitoring the rush into property to ensure lending standards don't deteriorate.

Here's my analysis on The World Today

Wednesday, February 3, 2021

Economic recovery on track, RBA cash rate on hold until 2024; some retail traders burned as Gamestop crashes 60pc

The Reserve Bank is forecasting the economy will bounce back to its pre-pandemic strength by the middle of this year. 

However, governor Philip Lowe says the RBA's official cash rate will remain on hold until 2024 as the economy fully recovers. 

Also, Gamestop shares have lost 60 percent of their value as steep selling left some amateur day traders challenging sophisticated hedge funds badly burned.

I speak with Thomas Oriti on ABC NewsRadio

Tuesday, February 2, 2021

Silver becomes the new Gamestop, metal soars to 8 year high on risky bets

The price of silver has soared overnight as amateur traders continue to take on big professional institutions at their own high risk game. 

It's the latest installment in the current David versus Goliath battle after day traders swapping information on social media pushed up the price of a little known company Gamestop. 

ABC's Peter Ryan says there are fears that day traders buying in at the top of the market could get badly burned when the silver price corrects.


Monday, February 1, 2021

Reserve Bank to update on economic recovery; Gamestop attack on US hedge funds rattles investors

It's a big week ahead for economic news with the Reserve Bank providing a major update on Australia's recovery from the pandemic-induced shock. 

A key question for economists is how the RBA balances the current near zero interest rates with the consequence of soaring real estate prices, fueled by cheap money and pent up demand from househunters. 

ABC's Peter Ryan also discusses market volatility caused by Gamestock trading on Wall Street where retail investors on "main street" are taking on major hedge funds on Wall Street.

I also speak with Thomas Oriti on ABC NewsRadio