Stephen J. Sadleir
Managing Director

The worlds economic situation over the past months have been of great concern to all of us but it now seems, on regarding recent bank statements and adjustments to foreign exchange rates, that the worst is over and the signs of economic improvement are becoming more and more evident.

The following is an extract from the Commonwealth Bank's foreign exchange report of 4/05/2009.

The end of this recession - the most severe downturn since World War ‡U - is finally in sight.  This is the clear message from ECRI's array of leading indexes of the U.S. economy.  What are these indicators?  First, it's Economic Cycle Research Institute's U.S. Long Leading Index (USLLI), which has the longest average lead times of any U.S. leading index.  It's also the Weekly Leading Index (WLI), which has a shorter lead over the business cycle, but is very promptly available.  The growth rate of the USLLI turned up in November 2008, and has now advanced for four straight months.  The growth rate of the WLI turned up soon after that, in early December 2008, and, as of mid-April 2009, had been rising for more than four months.  A rigorous examination of the data affirms that both USLLI growth and WLI growth have been in cyclical upturns for at least four months.

In light of the above, with interest rates for housing at lower rates than have been seen for many years and the FIrst Home Buyers Grant available and possibly having its availability extended, there just has not been a better time to invest in a new home.

Steve Sadleir

6/05/2009