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

The world economic expansion is still trucking along, although it has become a bit more dependent than previously on the U.S. economy. Fixed interest and other income-oriented asset classes continue to be challenged by the prospect of rising inflation and tighter monetary policy.

In Australia, there have been some promising signs that the pace of business activity is picking up, although the benefits for growth assets are being held back by the ongoing weakness of the financial stocks.

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