MoneyTalk

 

Investing Prospects Down Under

18 April 2011
In this week’s episode:

David chats with Bruce Jackson, the General Manager of The Motley Fool's new Australian outpost Fool.com.au. Bruce explains how Australia has not only managed to sidestep the global financial collapse but maintained its position as a global economic sweet spot. Of course, the Australian economy is heavily dependent on China's insatiable demand for commodities. But is this a blessing or a curse?

 

A transcript of this podcast is also available.

David Kuo and Bruce Jackson
David Kuo and Bruce Jackson

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Comments

The opinions expressed here are those of the individual writers and are not representative of The Motley Fool. If you spot any comments that are unsuitable hit the flag to alert our moderators.

shinygoldcar 18 Apr 2011 , 6:14pm

Very interesting. Thanks. Nothing for a value investor then? Certainly not property, commodities, banks nor even the Australian dollar itself. Implicitly maybe business in the slow half of the two-speed economy, but only if and when the ozzy dollar falls, and the share price is denominated in oz dollars. And perhaps bonds may go up in price if the interest rate drops?
But my oh my: what amazing interest rates! 6%+, that's better than a utility yield here (albeit with no rising income growth)!

TMFDragon 19 Apr 2011 , 2:49pm

Hi shinygoldcar

I interview Tim Hanson of The Motley Fool's Global Gains team in the next podcast. Tim was in Australia last month and there should be some investing nuggets on offer.

You are right about the mouthwatering savings rates - they are around 3% above the rate of inflation.

Best

David

shinygoldcar 20 Apr 2011 , 12:48pm

Looking forward to next weeks podcast.

Also, I'm idly wondering: what is the Australian government doing with the inflow? (And what should it be doing?) Should it be increasing its reserves (foreign currency, gold), giving it to its citizens (tax cuts and benefits), stimulating the slow half of the economy, reducing its debt (if it has any), investing it (infrastructure etc.)?

hairlet 20 Apr 2011 , 1:56pm

David

I enjoyed hearing you as an interviewee on the other Motley Fool podcast.

Maybe you could teach them how to fade out the music at the end of their podcasts...

sippquixote 21 Apr 2011 , 8:36am

If you are considering investing in Australian property then read Money Morning and Daily Reckoning Australia for a few weeks for a more honest approach and some pithy comments about the property hyping industry. Both free!
Beware the big talkers with vested interests desperately trying to offload their property investments.

TMFDragon 21 Apr 2011 , 12:45pm

Hi shinygoldcar

Bonzer! The next podcast with Tim Hanson should be a beauty.

I believe that despite the roaring success of the mining industry, Australia still has a national debt equivalent to around 20% of GDP.

That shouldn't be of huge concern and it should still allow the Australian government to encourage investments in non-commodities industries. But whether people are prepared to work in them when they can earn the equivalent of £140,000 as a rigger is a different matter.

Best

David

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MoneyTalk is a podcast from The Motley Fool (UK). Hosted by David Kuo, it’s a lively roundtable discussion where Fool writers and guests from the world of money thrash out the financial issues of the day.

Join us as we take an irreverent look at anything and everything to do with shares – from how to pick your first share to how to manage your own pension to what mini skirts have to do with Britain's economy (quite a lot, according to David).

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About the presenter

David Kuo is The Motley Fool’s media personality. He can be heard on BBC London’s (94.9FM) Breakfast Show where he arouses listeners every weekday morning with his unique brand of financial news. He is also a regular commentator on national news programmes including CNBC, BBC News, and Sky News.

David stumbled into the world of broadcasting at the turn of the Millennium when he was invited to comment on the stock market crash. He says, “I think I stunned Londoners speechless when I said the good thing about the crash is that shares are now more affordable for people who want to invest in the stock market!”

His attitude to investing has never wavered, as he always sees downturns in the market as a buying opportunity for long-term investors.