Abbott won't find joy in asset bubbles

A post-Abbott 'bounce' quickly turned into a housing 'bubble'. A genuine economic uplift will require consumer spending and business conditions to improve.

What should be counted as an 'Abbott bounce', and what should not? Many in the business community hoped that election of a Coalition government would cause a surge of optimism to get the economy moving again, but some indicators are misleading.

Most obvious is the current heat in both share and housing markets. The ASX200 has put on 1.7 per cent since the election and house prices are leaping ahead at an annualised growth rate of around 10 per cent.


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