Thanks for those articles. I don't think inflation is going away anytime soon either. Electricity prices going up significantly will contribute, corporations passing on higher input costs, wages expenses increasing. I think central banks are still playing catch up and it will take a rise in unemployment for them to hold rates. The Australian housing market is surprisingly strong despite rates continuing to climb, this is likely a product of low supply rather than higher demand, with many builders going under I don't see this changing in the short term.
With regard to shares, I think it's a product of higher anticipated profitability and stable/positive outlooks. Many say that interest rates are the gravity of markets and as term deposits cross 5% I'd expect many to reconsider the risk/reward metrics for their holdings, the bonds I'm invested in are paying 8-9% which is attractive given the market has climbed. I have taken profits on my VVA shares given electricity costs and likely impact of tighter consumer budgets.
