We’re not in a recession…yet

Investors focus this week turns to key US inflation data released on Wednesday. Isaac poole from Oreana Financial Services says while it is an important data point, ultimatley it wont make a big difference for the path of policy at the US Federal Reserve.

Issac says despite the markets reacting adversely to escalating energy and oil prices, core CPI inflation has been slowing, which aligns with the Fed’s goals.

He cautions that recent moves in the equity market has largely been brought about by high yields that lessen the fair value of tech and growth equities.

Isaac expresses concerns about an economic slowdown in the developed world, intensified by strong interest rate hikes. However he expects a strong performance for the US dollar with the buoyancy displayed by the US economy.

Bringing it back home, Isaac is relatively overweight on the Australian economy – driven by the central bank’s effective management, along with regions in Asia currently slashing rates, which he says might result in relative outperformance in the near future.

(Source: Ausbiz)

Click here to watch the interview.


Read our latest insights to help you make better investment decisions and build stronger portfolios.

A Licensed Financial Firm