Australia escaped the initial onslaught of COVID-19 relatively lightly. The GDP declined in the June quarter, while a substantial 7.0%, was rather less than the 9% or so experienced by the median OECD economy. It was however enough to do substantial damage to corporate earnings in FY20 and to pose ongoing risks to improved profitability in the future.
The unequal nature of the recovery and the potential for a resurgence of COVID-19 offshore will mean investors will need to position portfolios for resilience. Morgans cover the outlook for Banks, Retail, Telco and Property in this edition. Morgans continue to expect the market to make further gains, but are preparing for a more turbulent ride ahead. Morgans also pick apart the opportunities in the Listed Investment Trusts and update their Asset Allocation benchmarks.
Read more in 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.