Quarterly Economic Update
December 2021 Update
Topical news items for December 2021 include Omicron, inflation, and what rising interest rates and bond yields means for your investments.
We present our forecast global growth rates and international investment strategy.
We also discuss why we feel the Australian economy is coming into a 1950s-style boom, and run through the strategies we propose to take advantage of these circumstances.
September 2021 Update
Global Economics
- September represents the seasonal weak month of the Stock exchange
- Global Economic growth rates are strong, and this should continue as reopening pent-up demand is released
- And More!
Australian Economics
- The 2nd leg of the commodities boom is still to come
- Australia may benefit from a property boom, commodities boom, and the resultant wealth effect all at the same time (very good times to come)
Investment Strategy
- Take Profits from Covid ‘winners’ and recycle capital into reopening trades
- Stay overweight cyclical sectors, resources, energy, and economy facing businesses and maintain a bias for quality
- And More!
June 2021 Update
Key discussion points include:
- Recognise the extremely strong economic growth data all over the World
- [Consistent with “A Recovery from a Natural Disaster” which we presented in 2020]
- The high rates of ‘growth’ and ‘inflation’ are likely to be transitory so expect some volatility (Take Profits)
- The Economic Recovery has been uneven between different business sectors (Recycle Capital to opportunities yet to recover)
- Maintain overweight equity particularly cyclical sectors, resources, energy and economy facing businesses and maintain a bias for quality
- And More!
March 2021 Update
Key discussion points includes:
- The 3 Taps of Global Investment Support (turned fully on!)
- Positive News on the Fight Against Covid and Progressing to ‘Normal’
- Extended Large US Budget Deficits and their Effects
- Weaker US Dollar – Stronger Australian Dollar
- Strong Commodity Prices
- Strategies for this Phase of the Investment Cycle
- And More!
December 2020 Update
Key ideas to watch for in this update:
- Contact us if you wish the key strategies from this update to be implemented with speed!
- Central Banks – recognise the extraordinary stimulus from low rates
- Recognise the extraordinary Government stimulus
- Think of the recovery from the Pandemic to be more like that from a Natural Disaster NOT a typical recession
- Hedge International exposure (Australian dollar to head sharply higher)
- Own Commodity and Commodity Related businesses
- US Markets are over-valued mainly from large Technology names
- And More!
Want to Know More?
Contact us today and we will be in touch as soon as possible.