One word you certainly cannot associate with the global economic recovery in 2015 is 'synchronised'

Perpetual Equity Investment Company

Perpetual Asset Management (Australia)

One word you certainly cannot associate with the global economic recovery in 2015 is 'synchronised'. The US economy is revving strongly, but China appears to be moderating in a structural way and the recoveries in Japan, Europe and Australia look patchy at best. Although investors normally associate weak economies with weak earnings and declining sharemarkets, the key rule this year I think is to follow the stimulus while keeping an eye on valuations. The Australian economy this year looks reasonably soft and RBA rate cuts and the lower exchange rate are likely to provide only a modest boost to growth given the state of household balance sheets. More importantly, it is very hard to find compelling value in the Australian sharemarket as many companies are seemingly priced for perfection, particularly in the defensive sectors such as banks and healthcare. While stimulus will provide some growth delta, valuations are the ultimate driver of long-run returns and investors need to be careful about following the herd and paying too much for an asset.


MORE ON



Perpetual Asset Management (Australia)

The Perpetual Equity Investment Company Limited is an ASX listed investment company offering investors access to a portfolio of predominantly high quality Australian and global listed securities, selected by Perpetual Investment Management Limited.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.