Last night on ABC Nightlife with Tim Webster, we unpacked the impact geopolitical tensions can have on markets, the Australian housing market and China’s deflation dilemma.
Despite ongoing global unrest (from the Middle East conflict to the latest Trump headlines), markets have remained surprisingly resilient. We discussed why that might be, noting that markets often react more strongly to uncertainty than to bad news itself. History shows that when geopolitical events are anticipated, their impact on markets can be muted. We explored the appeal of private credit as a potential alternative for investors seeking returns without the volatility of markets, given its low correlation to equities.
The conversation then turned to the Australian housing market, where we challenged the narrative around headline property gains. Large, reported gains may sound impressive but less so when you break down the returns over time. Something property owners should take into account when assessing their gains.
Lastly, we touched on China’s economic landscape and their slide into deflation. Falling prices may seem benign, but if sustained, could lead to a deflation spiral which in turn could lead to real geopolitical implications.