Morningstar Australasia Pty Ltd  ABN: 95 090 665 544, AFSL: 240892

Most asset classes have done well. Equities have benefited from both lower bond yields and from more evidence that the global economy is improving. Looking ahead, bonds will face serious headwinds as the world economy continues to pick up; equities have the potential to make further gains, but on expensive valuations (particularly in the US) they have limited capacity to absorb any unexpected adverse setbacks. For more insight into Morningstar Australasia’s outlook of each asset class click here.