Financials flex their muscles: what’s good for banks is good for the economy

The decision by major banks over recent weeks to unilaterally raise interest rates on residential property loans, especially for investors, appears to be officially sanctioned and could helpfully ease demand pressures in the Sydney and Melbourne housing markets. That said, greed can be good! These actions could also conveniently help boost bank net-interest margins, which

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3 predictions for the Australian ETF industry in 2017

With assets under management at an all-time high, and increasingly more widespread use of Exchange Traded Funds (ETFs), the Australian ETF industry came of age in 2016, and continues to follow in the footsteps of more mature markets around the globe. The ETF industry in Australia continues to evolve, as new waves of investors demand

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Market Insights: Banking on Financials in a Low Interest Rate Environment

The Reserve Bank of Australia’s decision to cut the official cash rate last week – together with growing expectations it will cut interest rates further – has thrown the spotlight back onto yield plays in the Australian equity market.  Although financials have faced bearish investor sentiment in recent months, their still attractive yields and relatively cheap

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The impact of a housing sector downturn shouldn’t be underestimated

Signs are accumulating to suggest that Australia’s housing sector upturn is on its last legs. Yet due to the housing sector’s relatively small direct share of the economy, there is a risk that many analysts will underestimate the likely downside impact – which could be significant due to both the sector’s cyclicality and its relatively

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Can the housing boom last?

The upturn in home construction in recent years has been a major boon for the economy, at a time of falling commodity prices and a slump in mining investment.  The question arises, however, whether the good times can last in view of emerging supply-side constraints, rising vacancy rates and a tightening in lending conditions for

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