Daryl Dixon’s interview on Nightlife with Tony Delroy on 1 October 2013
The US government shutdown, Australian share market, superannuation under the Abbott government and property investment were the focus of the discussion between Dixon Advisory Executive Chairman and Tony Delroy on Nightlife on ABC radio this week.
Daryl said he believed the Australian share market was in for a period of consolidation after a 20% increase in the past 12 months, with dividends better than expected and stockbrokers appearing to be optimistic.
On the topic of the US, Daryl said the country would have to resolve its budgetary issues before it could taper quantitative easing and may even increase it.
He argued “getting off debt” would be one of the most serious problems in Europe, the US and Japan. Australia had similar problems and may need to raise the debt ceiling, but it was nowhere near the American situation.
“Two of Australia’s economists are arguing we should borrow more for infrastructure and the government’s got to get round it but . . . how do you get off debt?” he said.
On the topic of interest rates, Daryl said they were lower than necessary for a strong economy and didn’t expect them to drop further, though they weren’t likely to rise quickly either.
Regarding the 9.25% superannuation guarantee contribution, he said it may stay at that level for the next three years under the Abbott government.
Listen to Daryl’s full interview and discussion with callers on 1 October 2013. It runs for about 40 minutes.