The Reserve Bank of New Zealand (RBNZ) cut interest rates by 0.25% to 2.75% this morning. For Australia, the question is whether we’re next. The RBA has cut rates twice this year, to 2%.
As an investor with a front row seat of all the action in the Australasia region, you’re in an enviable position to profit from dozens of investment opportunities.
It could be Aussie producers shipping iron ore and gold to China, industrial companies capitalising on their expertise in Indonesia or start-ups tapping into millions of tourist dollars in Sydney.
How can you profit and grow your wealth from these? Read on for our best ideas below…
The Chinese economy will experience a rather harsh economic ‘adjustment’ in 2014 as it tries to move away from investment related economic growth, without popping its credit bubble, which this year inflated to historic levels.
It’s quite clear that property in Australia has little to do with income anymore. Or where it is, it’s about gaining tax concessions via negative gearing. No, property is all about the capital gain.
When the price of credit is held below the natural rate for prolonged periods of time, it creates major distortions in the economy. Central bankers will never admit this.
International traders view Australia and the Australian dollar as a proxy for what's going on in China. So bad news in China means sell the Aussie dollar.
Back in 2001, China’s share of world GDP growth was only about 11%. Now, it’s almost double that. As O’Neill points out, China’s economy is three times France’s and bigger than Brazil, Russia and India combined.
Into the next decade LNG prices should stay reasonably high. That's bad news for Japan, but good news for Aussie LNG producers.
According to The Australian, if no new projects are approved, LNG investment spending will drop from 24 billion in 2013 to 2 billion in 2017.
Australia’s corporate behemoths are publishing results left right and center. It’s tough to know what to make of it. But a few clear trends are emerging...