Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Invest

The case for optimism in key Australian markets

By Cameron Micallef · July 10 2019
Reading:
egg
egg
Canstar

The case for optimism in key Australian markets

author image
By Cameron Micallef · July 10 2019
Reading:
egg
egg
Canstar

The Australian economy is showing signs of life despite “clouds on the horizon”, according to an expert.

Speaking with Nest Egg, Canstar’s group executive of financial services and chief commentator, Steve Mickenbecker, discussed the Australian economic outlook. 

The housing sector

Currently, the housing sector is having a “triple impact” as the Reserve Bank cuts the official cash rate, the banking regulator updates its regulations, and investors are more cashed up via tax relief through the Morrison government. Combined they should act as a pretty powerful market tonic for stimulating the market, according to Mr Mickenbecker.

“Over the years, we’ve had quite a number of housing-led recoveries. The Hawke government inspired a recovery of the Australian economy with a housing-led economy, by stimulating the housing sector, which stimulated construction. This is a large employer when it gets going” said Mr Mickenbecker.

Advertisement
Advertisement

Demand for technology

Australia needs to follow the tech revolution as a way to offset future losses through mining, according to Mr Mickenbecker.  

“We have a couple of good examples with Atlassian and CSL, but they are too few and far between. We have a fair but of entrepreneur talent being exercised in the country, but it’s sort of not on the scale that will drag the economy through any serious restructure,” said Mr Mickenbecker.

If the private sector follows through on this demand, there is major investment opportunity for those eyeing growth industries. 

The export factor

Australia has experienced the highs and lows of resource boom. As the world shifts away from a focus on natural resources, Australia will likely follow suit. 

“We are so dependent on resources, and some of them would have to be in a low-term decline,” said Mr Mickenbecker.

“I think we will have plenty of coal left in the ground with nobody wanting to buy it. It’s a resource that will diminish, but I think markets will disappear for some of our exports before we have exhausted the resource,” said Mr Mickenbecker.

As with technology, this represents an industry ripe for investment and growth for investors which are growth and accumulation focused. 

This email address is being protected from spambots. You need JavaScript enabled to view it.

The case for optimism in key Australian markets
Canstar
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article
author image

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Copyright © 2019 MOMENTUM MEDIA