Australian Investment Blog

On the weekend, China dropped their interest rates by 0.25% for the third reduction in 6 months. China’s economy is struggling with growing debt and tumbling property prices. There are now around 30 Central Banks globally attempting to stimulate their economies into healthier shape. Various levels/forms of economic stimulus have been occurring since the GFC in 2007/08 with only the US showing signs of improvement and that is still not convincing.

After over 6 years of economic stimulus, the largest concerns for equities are:

1. Rising interest rates on the horizon for the US.2. A potential lack of belief flowing through that Central Banks can “play” with economies and when do they run out of bullets.