A great deal of debate has occurred in Australia on the notion that the residential property market may be experiencing a bubble, set to burst in a similar fashion to that in the United States. Over the last decade and a half, housing prices have risen substantially since 1996. The lack of affordable accommodation within the capital cities where most Australians live has resulted in concern about the viability of purchasing a home, especially for first home buyers. Rising housing costs have placed many Australians under a heavy financial burden, primarily that of paying down the mortgage on owner-occupied properties.
Despite the misgivings of the public, the economic and financial authorities – the Reserve Bank of Australia, the Treasury, the major commercial banks and real estate industry – have provided assurance that a bubble does not exist and the “doom and gloom” scenarios of a downturn in prices is implausible, the result of fear-mongering. On the other hand, a number of Australian and US economists have offered analyses countering the mainstream account. Some of them accurately predicted the US housing bubble and global financial crisis.
Dan Loeb’s Third Point Returns 1.9% In Jan Amid Market Turmoil
Activist hedge fund Third Point LLC recorded a profit of 1.9% in January, according to a copy of the firm's latest performance tear sheet, which ValueWalk has been able to review. These figures seem to suggest that the hedge fund managed to make the most of January's market volatility, as other hedge funds struggled. The Read More
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