"The egress of capital from bank accounts has to go somewhere."...

"The egress of capital from bank accounts has to go somewhere."

For starters, to with to service higher cost of living expenses and reduction of mortgages.

And those headwinds are only going to get worse over the foreseeable future given interest rates on ~$400bn in mortgages are going to be significantly re-priced upwards, and power bills which have been flagged to surge in the weeks ahead.

I strongly suspect this kind of call on personal capital goes a long way to informing the decline in SWF's client cash balance which already occurred during DH2022. And things have become even more pointy for households since the 31 Dec 2022 balance date.


"I expect this quarter to see a small bump in trading activity as small business owners use this as an excuse to deploy excess capital to things like Cash ETF's etc."

You must know a unique cohort of small business owners.

The ones I know and read about are struggling under sluggish demand and rising input costs.

"Excess capital" would currently be a decidedly foreign concept to the small business sector in Australia.

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