Will Australia keep booming?

As commodity prices rise, I’m getting increasingly positive on Australia. I’m biased, of course. But I’m not the only one. If you want a long conversation about why Australia is very well managed, you should check out this one.

All the key ingredients that make Australia a commodities powerhouse are heading in the right direction. Gold, silver and copper prices are booming. Our currency is cheap, while our fiscal situation remains strong compared to Northern Hemisphere peers.

There’s also a change in the political climate. Presently driven by anger, but will bring about a much-needed change. Australians are generally apathetic when it comes to politics, which can lead to lazy policy. Recent events have forced many who didn’t care to raise their voices.

Politicians, from all sides, are on notice.

I think this will lead to a big shakeup in the way we design policy. Hopefully, it leads to more productivity. I hope that we won’t waste the fruits of the next mining boom, as we have previously.

If we do the next 5-10 years right, it could set us up for the next 50-100.

Australia’s fiscal position remains strong, our trade position improving, our banking system prudent and our real estate market strong. You only need to look at Canada to see how bad their market is doing. Our proximity to Asia is our biggest asset.

I’m positive and think Australia will remain a great place to buy long-term assets like residential real estate. We have room for fiscal investment. I hope we see policy around boosting the regions (airports) and less around density. That will open up the market for a lot more opportunity.