Fundamentals haven't changed, page-598

@Idle Wanderer

I own SBM, SAR and EVN as well. Performing great. Glad you own these as well, we have the good ones in our portfolio.

More interested in the US 10 year bond rate and AUD 10 year bond rate the US climbing over the Aust 10 year, you would expect the AUD to fall and Gold to go upwards which means increased share price and gold price to go upwards as well as other commodities.

When the Australian bond 10 year goes under the 2 then it would indicate a contraction, and possibly a down turn or worst a recession in the Australian economy. I would be watching the US bond rates and Aus Bond rates

Given the level of household debt the Australian banks have borrowed from overseas then on lent to property investors or Australian to draw down on their home loans. So when the US 10 year bond rate goes up then the banks have to cover their charges by increasing rates, if people on interest only or heavily indebted then the risk of default or reduction in consumption spending increases. Which will slow down the economy significantly.

Australian house prices compared world wide and notice that house prices excluding Australia have been falling.




Household debt in Australia has surged from the early 90s when interest rates fell from historic highs and been comparatively low since.

Listen to these podcasts, you should be able to find the points on the Australian property market and the economy. They are really good.





Johnthan Tepper features in the 4 corners.



Loans



I could be wrong, or maybe I am right.....I like to remain objective when I invest.