From uncertainty to positivity? The Year Ahead.

This time last year US stocks had fallen to two-year lows. Since then they’ve climbed to a series of new highs. But, whilst equity traders have been happy, there’s been a degree of cautiousness in currencies and bond markets, driven by Brexit and the US China trade war. The fall in the Australian housing market has added to the problems domestically. So, with renewed hopes for a Brexit deal and a truce at least on the US China dispute, could 2020 be a year of strong growth. Or will it be the year the RBA resorts to quantitative easing to boost the economy. Join Phil Dobbie as he look forward to 2020, with NAB’s David de Garis, Tapas Strickland, Rodrigo Catril, Gavin Friend and Ray Attrill.

*** The Morning Call will return, each weekday, from Monday January 13th 2020. ***

One comment on “From uncertainty to positivity? The Year Ahead.

  1. michael lacey says:

    To maintain a semblance of vitality, western capitalism has become increasingly dependent on expanding debt levels and on the expansion of fictitious capital. This layer of financial assets that are only symbols of value, not real values. For example, company shares are traded like goods and services do not, in the same way, embody value.
    They are tokens which represent part ownership of a company and the potential distribution of future profits in the form of dividends. The paper or electronic certificate itself is not a genuine value that can create more value. Rising share/stock prices are often presented as a healthy economy, but the amount of money a share/stock changes hand for says nothing definitive about the value of a company’s assets or about its productive capacity.
    On the contrary, it is when real capital stagnates that the amount of fictitious capital tends to expand.

    Thus, during a property boom prices may reach astronomical levels where those who own their houses feel they are getting richer but come the down phase they wonder what happened to their new-found wealth which seems to have disappeared during the market correction.
    The fact of the matter is that it was never there in the first place. It was fictitious.

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