• Investor expectations for 50 basis point cut to US rates tomorrow are driving a rally in equities. After hitting an all-time high this morning of 8,153.5, the S&P/ASX 200 is down slightly as I type.
• I beg to differ with investors and suspect that the ongoing resilience of consumer spending suggests that fears over the health of the US economy are overdone. I am betting on a 25-point cut to US rates tomorrow.
• On the commodities front, last week saw Iron Ore drop below $US 90/t – its lowest level in two years – as China’s steel slowdown leaves markets in oversupply. Gold continued to shine, with a fresh high of $US 2,582/oz.
• With no connection to property, the price of coffee is about to go higher. Weather conditions have reduced supply, and the cost of premium Arabica beans has hit an all-time high – prices are up 40%.
• We are not alone in our housing crisis, as the US is also suffering. At the peak of their last boom in 2005, builders were constructing new homes at a rate of 2.2 million/year. It is now 1.2 million. This goes back to the 2008 financial crisis, when so many home builders went out of business, and the market has never recovered. Sound familiar?
• Spring has seen the of homes for sale increase to 2,350, with total listings of 3,329 (homes, units, and land). For contrast, in March 2016, total listings were 14,063, a 76% drop.
• WA’s Chamber of Commerce and Industry is forecasting a growing population due to strong migration, which is expected to fuel further house price growth.
• It is simply a demand and supply equation – so call me to see how I can make these market conditions work in your favour.

by Jody Fewster