When we think about Australian banks it’s often about interest rates or borrowing capacity (or complex loan applications!). But there’s another side to the banking system we can all learn a great deal from… Risk assessment. Banks are fundamentally professional risk managers. Banks are not property speculators. They don’t benefit like we do if a […]
Boring is beautiful – What the banks teach us about risk
Note to buyers – Consider the risks, and value-gap
Sentiment has noticeably weakened and this is putting downward pressure on house prices across the country. It is creating opportunities for buyers, but anyone transacting now should do so carefully. In today’s newsletter I summarise why the rate path is now biased upward and I offer a mental model to sensibly weigh up your next […]
What we’re telling clients after last week’s rate rise
The Reserve Bank of Australia’s ‘line ball’ (5-4 in favour) decision last week to raise the cash rate by 0.25% reflects its ongoing concern that inflation pressures are proving more persistent than initially hoped. Only 5 months ago that the market was anticipating two further cuts. Now there could be 1-2 more hikes and fixed […]