The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Monday, November 1, 2010

Consumers remain risk-averse

In good news for the RBA, Westpac's Red Book also shows that consumer risk-aversion remains at high levels, as illustrated by the charts below. Doubtless recent speculation around rate rises has helped the RBA's cause. Cash remains the 'wisest place for savings' followed by debt reduction and real estate. Shares have rightly suffered a systemic decline in their relative positioning after historic highs were reached in the late 1990s. I won't prattle on here any more about the volatility of equities, and their mediocre risk-adjusted returns, as we have done so too many times in the past...If only super funds would listen!