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Below are the insights we got from Alan Kohler 

 

Renowned Financial Journalist Alan Kohler Offers Insights on the Economic Impact of Childcare in Australia’s Future”

A group of childcare industry professionals and investors attended an event on April 4, 2023, hosted by Finexia Financial Group (ASX: FNX) in Southport, Queensland. The event was part of Finexia's inaugural 'Finexia Investment Investigator' series, aimed at providing investors with industry insights and opportunities. Finexia promoted its 'Childcare Income Fund,' which offers commercial loan facilities to experienced childcare operators to establish and upgrade centers.

ABC journalist, Alan Kohler, made several key points regarding the childcare industry at the event. He compared it to aged care, stating it is a "government-supplied product that uses private capital." Both industries receive government subsidies and are heavily regulated. He mentioned two recent reviews into childcare, one by the Productivity Commission, and another by the ACCC, and expects increased government support for the industry. Kohler emphasized the need for more childcare centers and increased subsidies to enable families to afford to return to work.

Kohler also discussed the likelihood of a US recession, stating that it is now 100% probable. He discussed historically low-interest rates, which he believes have driven property prices too high, and cautioned that rising interest rates may lead to negative impacts for Australians with fixed-rate mortgages. He warned that interest rates may continue to rise until a breaking point is reached, potentially due to the labor shortage.

Finally, he emphasized the growing importance of renewable energy and climate change, stating that it will be the top "investment and social obsession" of the next decade. The urgency surrounding climate change has led to a surge in demand for companies operating in the renewable energy space.

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