Macroeconomic issues trump politics in the markets
Morgans Chief Economist, Michael Knox, is not concerned about the impacts of the current political landscape. Instead, he’s more worried about global macro issues having an impact. “If we get quite strong growth numbers, both in employment and in GDP for the 2nd quarter, then we have to say that Brexit will be moving behind us, and we will then be looking at the prospect of a Fed rate hike by September. This would put upward pressure on the US dollar and downward pressure on everything else.” He sees the US economy returning to normal growth, and thinks that post-Brexit “we’ll go back to normal life in stock markets.” Watch the full video to see his views on the Australian election and what it means for markets: (VIEW LINK)
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