Mathan Somasundaram

Macro Outlook: Central bank support and weak fiscal reform should keep growth and interest rates low for longer. We expect investors to be pushed into high yielding equities to cater for the rising cost and falling yield environment. We also expect global investors to buy into Australian equity dividend yields as the currency pulls back to the high 60’s. In our view, Australian equities will continue to benefit from global demand for better than bond yield income streams, especially from the rising older demographic. The RBA may be forced to follow with cuts in 3Q16 and 2Q17 as the economy slows further. We continue to favour an investment strategy with a dominant sustainable yield aspect due to the weak growth outlook. SHIELD Top 20 picks are... (VIEW LINK)


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