Whilst Christmas and the holiday season is fast approaching, there is no shortage of key economic events and data releases on the global economic calendar.
This week we have the Federal Reserve (FED), European Central Bank (ECB) and the Bank of England (BoE) all meeting and deciding on policy rate settings for the final time in 2022.
The markets expectations are that each central bank will shift to a less aggressive monetary tightening regime, raising interest rates 50bps versus prior increases of 75bps.
As was confirmed from the November 2022 U.S. CPI print, inflationary pressures are expected to continue declining and potentially leading to further slowing of rate hikes when central banks meet once again in 2023.
The key questions for inflation in 2023 are, how fast will it fall? And where will it settle? The answer to these questions will be crucial to future global monetary policy responses.
As we near 2023, it is of Clime’s view that investors should shift their focus away from central banks and inflation and towards the outlook for economic growth and how this will affect assets exposed to global economies. We expect that Australia’s commodity-driven economy will avoid a recession, as it benefits from the reopening of China and the globes continued commitment towards achieving its ambitious decarbonisation goals.
These structural shifts underpin our view that the Australian equity market remains attractive versus its global peers and is supported by strong relative forecasted corporate dividend and earnings growth.
Disclaimer: Clime Asset Management Pty Limited | AFSL 221146 | ABN 72 098 420 770 The information provided in this post is intended for general use only. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information contained therein. Please consider the relevant disclosure document/s before investing in one of our products. Investment in securities and other financial products involves risk. An investment in a financial product may have the potential for capital growth and income but may also carry the risk that the total return on the investment may be less than the amount contributed directly by the investor. Investors risk losing some or all of their capital invested. Past performance of financial products is not a reliable indicator of future performance or returns.
The information contained in this website and video presentations is of a general nature. It is not advice or a recommendation to invest in a financial product and constitutes general financial product advice only. The advice has been prepared without taking into account your objectives, financial situation or needs. You should, before acting on the advice, consider the appropriateness of the advice having regard to your objectives, financial situation and needs. Before making a decision about whether to acquire a financial product, you should obtain and consider the Product Disclosure Statement, Information Memorandum or Financial Services Guide. We encourage you to obtain professional advice before deciding to invest in a financial product.
Investment in securities and other financial products involves risk. An investment in a financial product may have the potential for capital growth and income but may also carry the risk that the total return on the investment may be less than the amount contributed directly by the investor. Investors risk losing some or all of their capital invested. Past performance is not a reliable indicator of future performance.