What's the deal with housing prices?

For all of you who are sick of the sound of my writing, you're in for a treat today.

Property is always one of the hottest topics for us Australians, and one of my fave economists Dr Shane Oliver (Felix Stephen is still my number one) has written a terrific - and very reader friendly - article about the current state of play for housing.

It's not overly long and there's some pretty pictures.  Just click here for a copy.

And if you'd like to hear more of what I have to say on the matter, click here for a recording of my most recent "You & Your Money" radio segment on 98.1FM Radio Eastern.

Talk soon,
Caren

We have a new Government, but what does that mean for investment markets?

The simple fact is our elections don't generally move markets as they do in some other countries.  The reason for this is that our major parties (Liberal/National and Labour) just don't differ enough in policy to have a huge impact.

But of course there have been some unique circumstances in the years leading up to this particular election, which may have greater impact than usual in a few key areas:

A few points which seem worthy of raising include:

• The policies of the new Government if implemented are likely to lead to smaller government, less regulation and over time improved productivity and economic growth.
• Expect a mini-budget around November that may contain more aggressive budget savings.
• The historical experience combined with the more business friendly approach of the Coalition suggests a positive share market response over time.
• The key uncertainty relates to the new Senate.

For more on how we're likely to be effected, especially with regards to investment markets, I recommend taking a look at economist Dr Shane Oliver's latest article.  As always, he cuts to the chase and is an interesting read. Click here to read Dr Oliver's insights.

If you'd like to hear more of what I have to say on the matter, click here for a recording of my most recent "You & Your Money" radio segment on 98.1FM Radio Eastern.

Talk soon,
Caren 

PS. Please don't keep me a secret.  If you'd know someone who'd enjoy this or find it useful, pass it on! 

The doctor's thoughts on keys to successful investing

Regular readers will know that I have two favourite Australian economists (there's no way for that not to sound nerdy) - Felix Stephen and Shane Oliver.

Shane Oliver - sorry Doctor Shane Oliver - recently wrote a great article on Keys to Successful Investing, which I found to be relevant, easy-to-understand and entertaining.  All of which you have to admit is fairly surprising given it was written by an economist :)

A lot of his points confirm issues I've raised in previous blogs (a fresh perspective is always valuable), and he highlights some areas where he feels investors may have lost sight of what's really important.

His key points include:

• Four investment market realities: there is always a cycle; it's a mad, mad, mad world; starting point valuations matter a lot for returns; and the power of the compound interest.

• Keys to successful investing: know yourself; seek advice; invest for the long term; diversify; turn down the noise; avoid short-termism; focus on investments offering sustainable cash flow; recognise there is no free lunch; buy low, sell high; don't fret the small stuff; don't over rely on expert forecasts; recognise the aim is to make money, not to be right; beware the crowd at extremes; and if you have the right strategy, never despair.

Anyway, I don't believe in re-inventing the wheel, so click here if you'd like to read a full copy of the article.  I really do recommend it.

Talk soon,

Caren