Current cycle near its end

  1. 135 Posts.
    For the last 8 years Australian investors have enjoyed a booming time caused by the RBA chasing the Fed down the rabbit hole, in other words trying to stop a crash in the economy by preventing the dollar getting to high to keep exports on track. While this has been great for investors making money from housing as prices inflate over the cheap lending rates, nothing lasts forever.

    Everyone has forgotten the great USA, and well things seem to be going from push to shove at their central bank. Very soon (in housing investing time frames) we will see the Fed raise its rate back to its normal levels, and you can get your bottom brass razoo when this happens our great aussie dollar will drop as a result.

    While good at first, the RBA will be cautious not to let it drop too far or we will start to suffer high inflation on everything we import..  either way,  time for people to enjoy the last of the low cash rates and start paying down your debts!

    http://www.theage.com.au/business/t...es-toward-rate-increases-20150617-ghq336.html

    Over the last 18  years Australia has had two back to back up cycles, skipping the correction in the middle, it would be foolish from here to expect a 3rd.
 
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