Strong finish to the Year

2016 has been a year of surprises. From the political environment to the sporting field, there’s been no shortage of outcomes that looked highly improbable at the beginning of the year. Meanwhile, the market has largely shrugged off the macro shocks nearing the end of 2016 at nearly 5% higher.

The weight of cash in search of a reasonable return and an improving outlook for earnings moved investors to increase equity exposure. While it’s hard to rule out further volatility, the ‘Trump bump’ promises to finally break the deflationary effects holding back economic growth. Morgans think that Australian earnings will begin to participate in the increase of US earnings as stronger growth in the US economy feeds into stronger growth in the Australian economy.

Read the full Morgans monthly Investment Watch update.

For investment advice call PPT Financial on (03) 5331 3711.

DISCLAIMER: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained.