Who do you trust to inflate house prices?

Hopes for rising property values will decide the votes of many Australians this election season. But there’s a dark contradiction at the heart of those desires.

Ever heard the adage “buy on the sound of cannons, sell on the sound of trumpets”? It’s one to keep in mind as we head towards an uncertain 2014 with either Prime Minister Abbott or Prime Minister Rudd (ritually cleansed by the election) attempting to breath confidence into the economy, and thereby into asset prices.

For my money, there are more trumpets blaring on house prices and equity markets right now than are justified. 


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