Market Enters New Phase

2017 presents new opportunities for investors, with equity markets buoyed by renewed expectations for growth. The ASX 200 ended the year up 11.8% (including dividends) and FY17 promises to be the first time in two years where both earnings and revenue growth turns positive.

Ahead of the February reporting season we remind investors to take stock of portfolios. The key investment themes that defined the last three years are unlikely to define 2017. Until Q4 2016, investors bought equities for yield and bonds for capital gains. We shift away from ‘lower-for-longer’ trades and enter 2017 with the view that we are entering a new phase in markets, which is less to do with central bank (in)action and more to do with fiscal stimulus and reflating global growth.

Morgans see 2017 as a transitional year, with the anticipated US policies to reflate the economy to flow on to global growth and commodity prices, which bodes well for most sectors of 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.