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There’s no shying away from it, recovering from COVID-19 and the great lockdown will be unsteady and challenging. However, for Australia, there are green shoots appearing for 2021.
This note provides an update and looks at five reasons why the Australian economy is well placed for a solid recovery in 2021 and why Australian shares are likely to be relative outperformers versus global shares.
Last year's “back in black and back on track” budget was all about delivering the long-awaited budget surplus. This year, it’s spend, spend, spend as the focus remains on recovery and jobs, jobs, jobs.
The past financial year was poor for investors as coronavirus knocked economies into what is likely to be their biggest hit since the 1930s. The blow was softened by a strong rebound in the June quarter.
There has been much debate about the short-term economic and investment impact of coronavirus – on economic activity, unemployment, interest rates, house prices, shares, etc. However, the magnitude of the shock means it will have medium to longer-term implications as well.
After a strong rally, in the short-term shares are vulnerable to bleak economic and earnings news. However, positive news on the coronavirus outbreak is starting to get the upper hand.