In this issue, Morgans see the path out of the COVID-19 shock as a “restart” – not a typical business cycle “recovery”. The key reasons are the distinct nature of the shock, broad-based pent-up demand and different inflation dynamics. The passage of the US$1.9trn fiscal package and an accelerating vaccination ramp-up magnify these factors, and Morgans believe the restart will likely be stronger than markets expect. Inflation dynamics and improving economic growth will have a significant impact on bond yields – something that investors haven’t had to contend with for some time. This quarter they look at what this means for Asset Allocation in 2021. Morgans also look at what the economic restart means for the key industries in the ASX.
As always, speak to your PPT adviser in relation to which stocks suit your investment goals.
Read more in Morgans Autumn Investment Watch Update
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