Signs are good that Australia has turned the corner
“In my view, the Australian economy has turned a corner, at least at an individual level. Employment, consumption, exports, tourism and building approvals are all strong or steadily improving. Most encouragingly, it looks like the much-needed transition from mining to housing to the consumer has occurred, now we just need to get business properly on board. While there are still some headwinds to the economy that need to be taken into account, the overall picture is one of slow growth and recovery.”
Mr. Bryant said that while the ASX was sold off earlier in the week, this was because there was an expectation of lower GDP figures, and the fact there may now not be another interest rate cut saw some profit taking. “The sharemarket appears to be comfortably trading within a 5,300 to 5,400 range, and it seems likely that it will continue within this range for the short term, with some slow move upwards most likely. Australian investors should feel reassured by these stronger economic signals,” My Bryant said.