Why Australia Won’t Have a Recession Any Time Soon

There is so much wealth being created and invested at this time that $338 million actually looks like a small amount of money.

Today’s Money Morning will show you why.

That figure is how much the second stage refurbishment of Rod Laver Arena in Victoria is going to cost.

The Age reported around the development yesterday. It will incorporate a new eastern entrance ‘pod’, a brand new footbridge to link the center to the CBD, and a refurbished loading bay.

The work is due to begin after the next Australian Open. It’s due to finish in 2019.

There is so much development happening right now across the country, the Australian economy is highly likely to keep humming along.

Don’t allow the swings in the stock market draw attention away from you or spook you out of the positions.

20,000 dwellings in a new Sunshine city

Let’s remember up in Queensland on the Sunshine Coast that Stockland [ASX:SGP] plans to invest $1 billion in local infrastructure over the next 10 years as part of its Aura development.

We’re speaking a new city here, such as 20,000 dwellings, plus education centres and private hospitals over 2360 hectares of land.

Further north, the $50 million Cairns Aquarium as well as Reef Research Centre is officially under way. Not only that, however according to the Australian Financial Review this morning, you can include:

‘…a $45 million adventure water park; the actual?$200 million refurbishment and redevelopment from the Sheraton Mirage Resort in Port Douglas; a $23 million upgrade of the Tobruk Memorial Pool into an marine and leisure centre; along with a $65 million Cairns Performing Arts Center due for completion in early 2017.’

That’s all chicken feed compared to the $8.Fifteen billion Aquis Great Barrier Saltwater Resort billionaire Tony Fung has committed to.

There should be plenty of people to enjoy all the new facilities as well, if the latest tourist figures stay like they currently are.

New flights between Brisbane and Tokyo have increased the number of Japanese tourists arriving here. The Australian Bureau of Statistics says figures were up 18% for September. For all international visitors, the figure was up 10%.

The quantity of Chinese visitors grew 23.9%

A lower Aussie dollar no doubt makes the beaches, the ale and barbecues even more persuasive than a Paul Hogan ad.

Perhaps Travel and leisure Australia should run individuals Hogan ads in China. These people never would have seen all of them the first time around. TV sets were in short supply in China back then. Therefore were outbound tourists.

How would you say ‘shrimp’ in Mandarin?

This is barely the stuff of a coming recession.

And that’s just around australia. Things overseas look much more bullish.

Here’s a taste…

Property developer Uk Land just announced plans for a pound 2 million redevelopment of a 46 acre site in South East London. It’s going to take ten years to build. Construction is due to begin in 2017.

Not only that, but according to the Financial Occasions, ‘Rival developer Sellar Property Group is seeking to build 1,000 homes on a neighbouring site, including some in a 40-floor tower.’

This is all simply boring old property development. Wait until you hear about the truly exciting stuff…

The future is R2-D2 on steroids

The Guardian reported last Friday that Toyota is going to commit US$1 billion in a research company it’s setting up in Plastic Valley.

Its mission: develop artificial intelligence and robotics, and make Toyota the market leader in these spaces.

This isn’t science fiction. It’s already here. Take this from the post:

‘Toyota has already shown an R2-D2-like automatic robot that scoots around and picks up things for people, designed to help the elderly, the sick and individuals in wheelchairs. It has also shown human-shaped entertainment robots that may carry on conversations and play musical instruments.’

And let’s not forget the latest announcements from Apple. Chief executive officer Tim Cook thinks laptop computer is dead. He has the actual iPad Pro to prove it, too.

In one feeling, that’s a surprising statement because Apple actually increased desktop sales year on year.

But it was the only company to do so. According to technology research firm Gartner, PC sales have dropped 9.5% over the past year.

Apple isn’t short of cash to find out the answer, anyway.

Apple has become sitting on $207 billion in cash. Apparently, it’s the first corporation to ever cross the actual $200 billion mark.

There are large gains building in the world. To start capitalising on them, click here.

Callum Newman,

Associate Editor, Cycles, Developments & Forecasts

From the Port Phillip Publishing Library

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