Why we’re very optimistic on the outlook for the Australian economy

Kristiaan Rehder

Kardinia Capital

As Australia's two largest cities endure through lockdown, talks of a reopening trade are beginning to circulate again. It can all seem a bit familiar to investors as the topic took hold of finance media in late-2020. However, at Kardinia Capital, we believe thematics as strong as these aren't merely for the short term. Backed by an ever-increasing vaccination rate, consumers and businesses are looking through the lockdown to the light at the end of the tunnel. As such, we are very optimistic about the outlook for the Australian economy.

In this interview with Bennelong's Holly Old, I provide my view on where consumer spending is heading, our bright view on the travel industry and one fishy micro-cap taking advantage of a $7 billion industry.

Listen to the podcast here

Timestamps:

  • 1:14 – The latest on vaccination rates and supply
  • 4:32 – Why the spending shift away from services (to consumer goods) could be starting to reverse
  • 6:49 – Why Kardinia sees reopening stocks as a long-term thematic (despite the uncertainty of the Delta variant)
  • 8:21 – A brighter outlook for the travel industry at last
  • 11:21 – Stock story on one of the more fishy holdings in Kardinia’s portfolio
  • 13:58 – Kardinia’s view on the economic outlook, including interest rates and government balance sheets

Building and protecting wealth

Kardinia, a Bennelong Funds Management boutique, aims to generate positive returns through an investment cycle and not lose money in falling markets. For more insights from Kardinia Capital, click the 'FOLLOW' button below or visit our website.

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Kristiaan Rehder
Portfolio Manager
Kardinia Capital

Kristiaan has more than 20 years of experience in the broader financial services industry. Prior to co-founding Kardinia Capital, he was a portfolio manager with Herschel Asset Management, with responsibilities across responsibilities across a...

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