Higher than desired inflation is now structurally embedded in the global economy, driven by the ‘Four D’s of Inflation’ – Decarbonisation, Deglobalisation, Demographics and, new for 2024, Deficits. Critically, the boom-bust inflation cycle of the 1970s gives a useful historical parallel, providing investors insight into the coming decade. Such an environment of whipsawing volatility and low real returns provides opportunity for those prepared, with Australian equities - by virtue of its make-up - standing to provide a natural hedge to ongoing volatility and structural high inflation ahead. But beware, understanding ‘who is in the Chair’ at the Fed, RBA and RBNZ is now more important than ever.

William Curtayne

The RBA is set to continue rate hikes that will bring on an earnings recession in 2023. Use Australian equity market weakness later in this year as the silver lining to position for an improved long-term outlook for Australian equities.

William Curtayne | 0.50 CE