Key takeaways:
- The US economy broadly remains resilient, supported by strong household consumption.
- China’s economic activity remains subdued with the property sector weakening further. Investors were disappointed with the limited details provided on its economic stimulus plans.
- A “soft landing” is expected for the international economy, characterised by slowing but positive growth, while growth in emerging economies is expected to be supported by expansionary policies.
- We prefer emerging markets over developed markets in light of their favourable economic prospects and appealing valuations. We also favour global listed property for their strong fundamentals and attractive valuations.
- We expect growth to remain subdued in Australia and favour Australian government bonds over cash, as cash rates are likely to have peaked.
