|
Hedge Clippings | Friday 22 November, 2019
Hedge Clippings remains in distant parts, and thus well out of the daily face-to-face contacts we're used to, and with limited access to the usual internet and email overload we're normally dependant on. The challenge, therefore, is to pick up what one can - partly to keep in touch with events in Australia, and possibly bring some relevance from an offshore perspective.
Over the past months it would be impossible not to have noticed an increase in anti-Chinese rhetoric in Australia, possibly partly in response to Donald Trump's trade war, but also locally as well. This has seemingly ramped up this week with former ASIO director Duncan Lewis saying that the Chinese government is trying to "take over" Australia's political system through foreign influence operations, with any person in office a potential target.
The same goes for business and commerce in general.
We might think the Chinese government is focusing on Australia, but this situation seems to be replicated around the globe. Currently we're in Barbados, famous for Sir Garfield Sobers' exploits in the cricket pitch, and of course rum, which by the way is excellent! The point is that even on this tiny speck of an island (21 miles by 14), and throughout the region, today we had exactly the same conversation with a leading local business identity.
Moving on, it seems that Australia's economic growth forecast has been downgraded, which shouldn't come as too much of a surprise. Household debt is at record levels fuelled by ultra low-interest rates which are likely to go lower. In response the government has announced a major $3.8 billion infrastructure investment program, but is it enough?
Hedge Clippings has long called for an investment of superannuation fund assets into infrastructure. Both have a long term horizon, and one would have thought the political or legislative issues to be easily managed.
The infrastructure sector is of increasing size and interest in AFM's database. Steady returns, steady income streams, and both local and offshore exposure - both to emerging and developed economies. Watch this space!
|
