Christopher Joye

An incredible 34 per cent of all ASX companies would be classified as “zombies” based on their inability to produce sufficient profits to cover interest repayments.

Record migration should buy the Reserve Bank time to avoid lifting the cash rate to the 4.1 per cent plus level currently priced by markets.

Many borrowers who took out ultra-cheap home loans will soon face mortgage rates that are 40 per cent more than the maximum their lender thought they could service.

The pain is set to continue for many more months to come unless the Reserve Bank swings 180 degrees and starts cutting interest rates.

This inflation crisis has changed the world and asset prices forever, and will lead to a structural break and a fundamental shift in the way things work.

Expect a global recession, continuing asset price declines, the decimation of the crypto landscape and the mother-of-all “zombie” loan default cycles.

The sharp decline in US inflation means we are approaching the end of the rising interest rate cycle.

In their quest to crush inflation, central bankers are going to crush everything.

The market’s sideways movement will be superseded by the Reserve Bank hammer-pounding borrowers harder in the months ahead.

The start of the RBA’s second hiking cycle signals interest rates are likely to remain high for a long time, putting pressure on asset prices.

Businesses appear focused on paying shareholders rather than buying or building new equipment and technology, creating a profound productivity and inflation problem.

Struggling companies represent up to 15 per cent of all listed firms, and they’re being crushed by tighter monetary policy.

The big question is whether the RBA can resist political interference to lift the cash rate in November.

With the advent of the $3.5 trillion in compulsory savings via superannuation, Australia has become a breeding ground for some of the best investment talent on the planet.

While the “everything” rally has excited risk junkies, inflation might spoil the party again.

Central banks delayed rate increases after the pandemic on the basis they could not forecast the future, but now use rubbery projections to rationalise rate cuts.

The spike in US inflation has caught equity and debt investors napping.

In total, 1131 businesses went bust in the month, which was the largest number since ASIC started collecting these statistics in 1999.

The “Sahm rule” suggests the US may be near a recession, and any sharp increase in unemployment will likely be met by aggressive Fed rate cuts.

Very low inflation readings in the coming months will change the interest rate debate.