Trade Secrets – it’s all in the charts!

If you listen to the media you’d be convinced that it’s all doom and gloom. You’d be forgiven for thinking that the country is going broke.

However, if you have a closer look at our current account balance, shown in the chart below you’ll see why I think we are heading for the Golden Era. The orange line indicates the net balance between what we trade with the rest of the world and what we import from the rest of the world. Clearly, most of the time we are in negative territory - below that zero line.  When I was going to school and learning economics, it always concerned me that, at the end of the day, we would end up bankrupt with a huge overseas debt. Our off shore debt is indicated by the green line which is the net balance from all of our trading with the rest of the world.

Then we have the current account balance, the blue line.  Now, why am I excited that we are in for some good times?

From 2007 you can see that, despite the scaremongering of the media, things are increasing at a 45 degree angle and going up. If you project those lines further on, you can see that we will have, sustained periods of positive income coming into the country from our trading. I believe that will happen before 2018.  This will mean that we’ll have a rising Australian dollar as people will have to buy more of our Australian dollars to buy our goods and services.

Enjoy the Golden Era now before the media wake up!!

The International Monetary Fund has recommended that the US Federal Reserve NOT raise rates this year. Will this mean low rates for longer?

Join our Property Club membership to keep up with the latest forecasts on interest rates and what’s in store for the Australian property market – we don’t believe in keeping it a secret.

Regards,

Kevin Young

Club Founder