Strategic thoughts to absorb from this update:
Note Sept seasonal weakness and increasing US Corporate tax rates increase volatility
Global growth rates are strong, and this should continue as reopening continues
We are entering a Global trade boom (good for commodities)
US markets are expensive – we have a preference for Asia, Australia, and Europe
We model a stronger Australian currency, so we stay with hedged US & EU investments
The 2nd leg of the commodities boom is still to come
We favour Travel as the reopening trade
Australia may benefit from a property boom, commodities boom, and the resultant wealth effect all at the same time (excellent economic times to come – supports share investments)
We prefer to share exposure currently and see actual negative returns and capital risk for Bonds.
We prefer ‘Floating Rate’ fixed interest exposure.
Take Profits from Covid ‘winners’ and recycle capital into reopening trades.
Property - Take Profits from Covid ‘winners’ and recycle capital into reopening trades
Banknote margins, term deposit rates are all likely to head lower (Banks don’t need the capital)
We welcome John, Nick, and Laura – our ‘new’ team members.