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The case for optimism in key Australian markets
The Australian economy is showing signs of life despite “clouds on the horizon”, according to an expert.

The case for optimism in key Australian markets
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.
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.
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