Well....this is only the start...but have a look at these articles...as I have said the psychology of investing has a part to play.
The article below talks about the high dollar hurting the Aussie manufacturers...contrary to believe this is still reasonable in Australia. I think the RBA will move on this which means reducing rates...which in turn will lower the strength of the Aussie dollar.
http://www.smh.com.au/business/rising-aussie-dollar-hurting-key-industries-20110502-1e44r.html
And now for the underlying trend of food prices cming down post Yasi and Floods.
http://www.smh.com.au/business/frui...-bringing-consumer-relief-20110502-1e3ti.html
Will be interesting to see how the RBA reacts when the Aug figures clearly show sugglish GDP growth, employment growth flatlining, and inflation coming down rapidly.
If Ghaddafi is knocked off....you will also see Oil prices coming back down.
The article below talks about the high dollar hurting the Aussie manufacturers...contrary to believe this is still reasonable in Australia. I think the RBA will move on this which means reducing rates...which in turn will lower the strength of the Aussie dollar.
http://www.smh.com.au/business/rising-aussie-dollar-hurting-key-industries-20110502-1e44r.html
And now for the underlying trend of food prices cming down post Yasi and Floods.
http://www.smh.com.au/business/frui...-bringing-consumer-relief-20110502-1e3ti.html
Will be interesting to see how the RBA reacts when the Aug figures clearly show sugglish GDP growth, employment growth flatlining, and inflation coming down rapidly.
If Ghaddafi is knocked off....you will also see Oil prices coming back down.
Good luck Sash. I think however you have picked it incorrectly. Interest rates will head up, and property prices will continue to cool.
The main inflation driver will now be the natural disasters mid-term. It will be the fact that inflation is rising globally (everyone has overstimulated). China is fighting inflation. Much of Australia's inflation rise will come from imported inflationary pressure.