I think, for the medium term anyway, China's attempt to contain asset bubbles will be good for the Australian economy. Making recovery more sustainable.
Australia is beautifully positioned in Asia. I've been long on the $AUD on pprune when the doomsayers were banging on of under 50 cents 12-18 months ago. Every chance I had in the last 12+ months I structured debt or bought the Aussie under 75 cents. And reversed, squared up and profited.
If you are long on Asian growth go long on the Aussie. And of course it is vulnerable to any double dip scenario. Which is very hard to hedge against as a PAYE citizen of Australia.
Cash is not King. Cash flow is king. I see guys cash out of the markets or real estate and then do nothing. Re-entering the market at dubious times. Whereas guys with a lot of cash flow tend to build on their income streams and have more creative nouse or financial fluency.
Last edited by Gnadenburg; 15th Feb 2010 at 13:00.