Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892
World equities have been recovering from their February sell-off and are now back up to where they started the year. On the plus side, the outlook for the global economy has strengthened further and provides a promising backdrop for corporate profits. On the down side, many asset classes remain expensive and are vulnerable to further rises in bond yields. Investors also risk being too blasé about risk and may not be prepared for the likes of tariff trade wars or other geopolitical surprises.
In Australia, the economy appears to be picking up a faster head of steam, but it is not obvious that growth will be fast enough to deliver a strong boost to corporate profits.
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