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UniSuper

  •   18 April 2024
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UniSuper Investment update with John Pearce – April 2024

18 Apr 2024: The Australian and US share markets continued their overall strength through the third quarter of FY24, but so far, April has been more volatile. In his latest investment update, Chief Investment Officer John Pearce discusses the market rally and recent market jitters.

Key points in John Pearce’s video:

  • Share markets were strong until the end of March, but April has been jittery.
  • The strength in markets was driven by strong employment (which means strong incomes), the prospect of cuts in interest rates and Artificial Intelligence (AI).
  • Listed Property has continued its strong run, bouncing back from a poor start to the financial year. Property benefits from the prospect of interest rates on hold or being cut.
  • What's been notable about the rally to the end of March was that it was broad based, compared to last financial year which was all about the Magnificent Seven.
  • The AI boom continues to reap market rewards. Nvidia has been an exceptional performer—in announcing its results, it not only met but comfortably exceeded expectations.
  • In Australia, our market hit all-time highs despite high levels of household debt relative to annual income. Why? Only a third of Australian households have a mortgage, our employment market has been strong, and the wealth effect - our assets are growing strongly in value.
  • The market jitters in April have been driven by a mix of geopolitical tensions in the Middle East and sticky inflation, but critically, the market has “got ahead of itself” following a sustained run of positive news.
  • Recent activity shows that even a little bit of bad news can have an impact on share prices. But while there might be some short-term April nerves, we think 2024’s market rally is still on solid ground.
  • We’re pleased to highlight some quality long-term investments that we’ve recently made: a 50% interest in a development site at Burra Park, adjacent to the new Western Sydney Airport which will begin 24/7 operations in 2026, and an investment in the Macquarie Green Energy and Climate Opportunities Fund, a fund that invests in technologies to support the transition to net zero and help meet sustainable energy needs in Australia and overseas.

Watch the video here (13 mins)

 

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