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August 10, 2023

YIELD CURVE INVERSION – Are We Heading For a Recession?

Recently, there’s been no end of provocative and alarming headlines written about the Australian economy, with words like ‘crisis’ and ‘recession’ readily thrown around. A major driver of this concern is that Australia’s yield curve has inverted – something that hadn’t happened previously since 2008. But what makes this a big deal? And what is a yield curve anyway? To break this down, we first need to understand how government bonds work and what makes them an important component of the economy.
August 10, 2023

YIELD CURVE INVERSION – Are We Heading For a Recession? Part 2 of 2

In the previous article, we began to explain the yield curve by looking at the mechanics of bonds and bond markets – start there if you haven’t already! In this article, we’ll tackle the yield curve, and examine what it can tell us about the likelihood of a recession. Pulling everything together from before, we arrive at the yield curve.
August 18, 2023

What Can Household Size Tell Us About The Property Market?

The Australian housing market is an incredibly complex entity, shaped by an interplay of various factors that create distinct trends and patterns. One factor that often goes unnoticed, but plays a vital role in understanding the housing market, is the average household size. Over the past few decades, the average number of people living in each Australian household has steadily declined from 2.9 in the mid-1980s, driven by factors such as an aging population, falling fertility and marriage rates, and higher household incomes.
August 21, 2023

How Can Inflation Impact Property Investors?

Inflation: An increase in the overall price level of an economy, often measured in terms of CPI (consumer price index) via the changing cost of a ‘basket of goods’ over time. Down from a 7.8% peak earlier this year, inflation now sits at 6%. A definite improvement – but still well outside the 2-3% range that the reserve bank is tasked with maintaining.   (RBA, 2023)  Understanding the major effects of this upon the economy is simple enough. Goods and services are getting more expensive, and our purchasing power is eroding, as the ‘value’ of a dollar declines.