Living cost pressures will be so tough on consumers that the Reserve Bank could be the first central bank to cut interest rates, predicts Morningstar.
Living cost pressures will be so hard on consumers that the Reserve Bank of Australia could be the first central bank to start cutting interest rates, yet businesses are still on course for an earnings recession, says Morningstar’s investment chief.
And that is before the commonly called “mortgage cliff” – where an estimated $500 billion worth of fixed-rate mortgages will expire by Easter and switch to a more expensive variable-rate loan structure. Morningstar, which has $US239 billion under advice and management globally, likes emerging markets and in particular Chinese tech stocks like Ali Baba.
Mr Wacher is underweight materials because the prices of the big integrated miners are “getting a little stretched” despite possible high demand from China as the Asian giant re-opens its economy. He prefers Brazilian miners. He predicts company earnings will start to erode in the first half of the year because they will have to lower prices while facing higher costs from inflation and pay increases.
Growing up, Mr Wacher loved running and wanted to be a physiotherapist or a sports doctor – his father was a physician. For instance, Mr Wacher booked profits when he sold Alibaba Group shares bought around $HK60-$HK70 and currently trading around $HK116.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Sydney property industry prepares for more Reserve Bank rate rises | 7NEWSReal estate experts say Sydney's property market has virtually seized up, as buyers and sellers anticipate how much the Reserve Bank will hike interest rates. There is no relief for renters either. Locals are now competing with growing demand from overseas
Read more »
Deadly Jerusalem synagogue attack condemned as West Bank violence spiralsPolice called the attack on an East Jerusalem synagogue a 'terrorist incident'. There was no initial claim of responsibility for the attack, which took place on International Holocaust Remembrance Day.
Read more »
Second shooting in Jerusalem as Israel launches security crackdown in West BankA shooting wounded two people in Jerusalem as Israel's military said it was boosting its forces in the occupied West Bank after a Palestinian gunman shot dead seven people near a synagogue.
Read more »
A fridge too far? Living sustainably in New York by unpluggingManhattanite Josh Spodek has gone without a refrigerator for more than a year after identifying the appliance as the biggest source of electrical use in his apartment.
Read more »
Life-changing win for wildcard doubles heroesAussie duo Rinky Hijikata and Jason Kubler played their wildcard to perfection and won’t be “living off the smell of an oily rag” this season.
Read more »
New study by Indigenous rangers sheds light on secret lives of one of Australia's most elusive marsupialsThe scaly-tailed possums living in a largely impenetrable series of gorges in a remote part of the Kimberley have lived undetected, until now.
Read more »