skip to Main Content

Market Update: The Growth Conundrum

Global economic growth and inflation indicators are showing signs of improvement. Stronger economic growth has always been a positive driver for equity markets, but rising inflation will also be challenging for income oriented asset classes. Valuations across most asset classes remain expensive and are vulnerable to any unexpected adverse shocks, especially as investors appear to be factoring in low levels of concern about political instability or President Trump’s ability to pass his well publicised campaign promises.

Domestically, there is still no clear evidence of a pick-up in economic growth. If anything, recent data has been on the weaker side of expectations, and growth assets (outside of resources) will need stronger cyclical conditions to make meaningful gains.

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.

Back To Top

Stay Informed

Join our mailing list to receive the latest business, financial and taxation tips and advice.
SUBSCRIBE
close-link