Six forces driving Australian equity portfolio returns

Six forces driving Australian equity portfolio returns We are now in the late stage of the business cycle when a range of risks and opportunities are being thrown up at Australian equity investors. These reflect changes in fast-moving global markets, domestic policy choices and the evolving priorities of local businesses. These changes will create exciting opportunities for some Australian companies but throw up challenges for others. 1. The global economy is becoming more volatile The …

Should the RBA raise rates to prepare households for higher global rates?

Should the RBA raise rates to prepare households for higher global rates? Key Points The RBA should avoid calls to raise interest rates prematurely just to prepare households for higher global rates. Such a move would be Iike shooting yourself in the foot in order to practice going to the hospital.. Nor should the RBA mess with the inflation target that has served Australia well. We don’t see it doing either and continue to see …