Since the GFC, the economy has enjoyed what many have dubbed the Australian moment

Since the GFC, the economy has enjoyed what many have dubbed the Australian moment. It was argued that Australia was structurally well-positioned in terms of China and a falling USD which helped push-up commodity prices and investment. According to UBS, the Australian economy has a sell sign hanging as US and Japanese investors redirect their portfolios to their home markets. Foreign investors are deserting the market for Australian government bonds, buying only 30% of issues compared to 80-90% a year ago. In the medium-term, Australian bonds/equities are expected to underperform as balance is restored to our economy. (VIEW LINK)