Shane Oliver
Shane Oliver
costs easier people pushing retail seems small stock
For the retail investor, a stock that costs $1 seems easier than a big-cap stock that costs $30, $40 or $80, so people are pushing into small caps.
appear correction entered fairly global markets period share start strong
Global share markets appear to have entered a period of correction after most markets had a fairly strong start to the year.
australian close easing fed interest investors likely monetary policy quite rates renewed shifting starting toward widening wonder
U.S. interest rates are pretty close to the top. By year- end it is quite likely the Fed will be shifting toward easing monetary policy and investors will be starting to wonder about a renewed widening in the Australian and U.S. interest-rate gap.
decision head knock recovery retail sales seeing slow
Today's decision will slow the recovery we've been seeing in retail sales and housing. It will be a knock on the head for both.
australian fact global indicate offer return shares similar trading
The fact that Australian shares are now trading on a similar pe to global shares does not indicate that they are overvalued or that global shares now offer better return prospects.
asian crisis far risk situation
The situation is far healthier. The risk of another Asian crisis is very low.
cheap china environment helping hold inflation interest pricing products rates time underlying
Cheap products from China and a very competitive pricing environment is helping keep underlying inflation in check. Interest rates are on hold for the time being.
lasting relevance zealand
Developments in New Zealand are of little relevance to Australia, so won't have a lasting impact.
bit correction financial globally interest markets possible pressure putting quite rates share
Interest rates globally are putting some pressure on financial stocks. It's quite possible we go through a bit of a correction in share markets around the world.
agencies blow borrower buy companies corporate credit default guide inflation people portfolio provide rating rely risk takes
In corporate debt, you have the credit risk of borrower defaulting and that's why people rely on the rating agencies to provide a guide on the default risk, and the other risk is that there could be a blow out in yields, for instance, you buy a portfolio and inflation takes off or companies go bust.
australian bubble china enthusiasm forms resources risk shares though upside
An upside risk for Australian shares though is that a bubble forms on the back of enthusiasm for China and resources stocks.
bank benign cheap consumer environment extremely fuel inflation interest items leave plenty prices range rates reasons remain retail slowing spending thanks underlying weak
Slowing housing, weak consumer spending and benign underlying inflation give the bank plenty of reasons to leave interest rates right where they are. Fuel prices are up, but thanks to an extremely competitive retail environment and cheap imports, prices for a whole range of items remain weak.
asian past stocks themselves turned
Asian stocks have completely turned themselves around the past decade, and they're going higher.
bank both commodity concerned economy given global head higher knock pressure retail strength
The bank is concerned about inflationary pressure in the economy given the strength in the global economy and higher commodity prices. It will be a knock on the head for both retail and housing.