• The ALP has won government and there will be changes.

  • The Liberals have only themselves to blame.

  • The Economy cannot find its way froward effectively without urgent and dramatic review of the RBA.

The Liberals have only themselves to blame. The only question is are they capable of figuring that out?

Congratulations to Anthony Albanese, being sworn in as I write this article, and to the ALP. Also to the Nationals who did well, the Greens picking up three seats in Queensland and all the independents who have done so well.

There were a lot of factors at play, but for me, the key points were that Bill Shorten lost the previous election, it was not so much the great Morrison victory the Coalition though it was.

And hence, the huge dis-satisfaction with Scott Morrison in the electorate, personally and on leadership and policy issues, that the Liberal Party did not pick up until it was too late. The Australian public simply decided that if the party will not get rid of him, they will.

The other massive factor was the increasing awareness of Australia’s climate responsibilities.

What now and what does this mean for markets?

Certainly, renewable energy companies should do well out of this change of government. There could also be a slow re-building of our relationship with China to some extent. Though this will be a difficult journey and will remain respectful at the same time of regional security issues.

There could also be a new financial industry of efficiently switching superannuation funds into property? We will see how this policy idea unfolds.

For the Australian share market there will be a moment of caution.

Given the backdrop of the US stock market already having fallen 20% this year, and the change to a bigger regulation and spending government here, some caution on stock investment is appropriate.

It may in fact take a fresh impetus for many investors and funds to overcome this initial hesitation. None would seem to be immediately on the horizon. Though some day traders may see this as a 'sell the rumour, buy the fact' event. Any such immediate rally however, is likely to be short lived.

My central economic theme; is that the Australian economy is only just beginning to tip over into a far more challenging period, one made up of stimulus hangover effect, rising inflation, and the economic stewardship of one of the world’s least capable central banks.

In fact, what was lacking in the Federal election debate was perhaps the most serious economic challenge confronting us. The Reserve Bank of Australia having created artificially high property prices which ALP policy seeks to redress by allowing superannuation to be allocated to the family home. However, this will only likely exacerbate the property bubble risk now confronting the nation.

What is attractive personally, is not always what is best for the nation as a whole.

Australia needs higher rate settings in a more thoughtful and fresh approach. Australia needs and deserves a better Reserve Bank.

The economy cannot find its way froward effectively without urgent and dramatic review of our central bank.

RISK WARNING: Foreign exchange and derivatives trading carry a high level of risk. Before you decide to trade foreign exchange, we encourage you to consider your investment objectives, your risk tolerance and trading experience. It is possible to lose more than your initial investment, so do not invest money you cannot afford to lose。 ACY Securities Pty Ltd (ABN: 80 150 565 781 AFSL: 403863) provides general advice that does not consider your objectives, financial situation or needs. The content of this website must not be construed as personal advice; please seek advice from an independent financial or tax advisor if you have any questions. The FSG and PDS are available upon request or registration. If there is any advice on this site, it is general advice only. ACY Securities Pty Ltd (“ACY AU”) is authorised and regulated by the Australian Securities and Investments Commission (ASIC AFSL:403863). Registered address: Level 18, 799 Pacific Hwy, Chatswood NSW 2067. AFSL is authorised us to provide our services to Australian Residents or Businesses.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 

EUR/USD News

GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 

GBP/USD News

Gold stays below $1,830 as US yields edge higher

Gold stays below $1,830 as US yields edge higher

Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.

Gold News

Why Cardano could surprise over the weekend

Why Cardano could surprise over the weekend

ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Majors

Cryptocurrencies

Signatures