Dr Shane Oliver, Head of Investment Strategy and Chief Economist takes a look at where we are in the investment cycle.
The key points are as follows:
The history of cyclical bull markets in shares suggests that the rebound since last March still has a way to go.
But it’s normal for the second 12 months of a cyclical bull market to see slower returns from shares.
While shares are vulnerable to a further correction triggered by the spike in bond yields, we are not seeing the sort of unambiguous overvaluation, economic overheating, monetary tightening and investor euphoria normally seen at cyclical tops.
If you would like to discuss any of the issues raised by Dr Oliver, please call on 1300 882 166 or email email@example.com.