Omicron, property, CSL and Christmas – what a combo!
There have been some big guarantees made by politicians just a few days before Christmas. Of course, there is the standard one-liner that there will be no more lockdowns! Then last week the government claimed one million jobs will be created over the next four years, inflation is expected to be steady, and wages should rise by 3%.
But all that’s based on some rather heroic assumptions including that the Omicron COVID variant won’t alter reopening plans, and there won’t be any new restrictions that limit our activities.
I hope you’re more confident than I am on all of the above.
To reflect on the year, the standout asset classes were shares and property. Last week I interviewed Eliza Owen head of research at Core Logic, who said it was a year like no other on the property market. Click to listen to that chat.
I learned that the total value of residential real estate rose from $7.2 trillion to a truly staggering $9.4 trillion in the past 12 months. Median prices have surged to record highs, prices are growing at record rates, sales volumes haven’t been this juicy since the 80s.
In other news, last week medical giant CSL made a $16 billion acquisition and are now raising money from existing investors at a discounted rate. As a result, existing CSL shareholders have the opportunity to participate in a Share Purchase Plan up to the amount of AUD$30,000.
Share price will be the lower of:
- AUD$273 per New Share; or
- 2% discount to the five-day VWAP during the last five trading days prior to, and including, the closing date.
If you are eligible, you have until C.O.B 1st February 2022, to allow sufficient time for processing.
And lastly, our team is taking an extended break, so we will catch you back on Tuesday the 18th of January 2022. In the meantime, thanks to all our clients, radio listeners, and newsletter readers for your support throughout another tumultuous year. We wish you all a very merry Christmas and a happy, healthy new year!
And on a personal note, huge thanks to Ajla, Leah, Bao and Interprac – we’d be lost without you!