Why now is ‘not the time’ to be lightening up on equities | Ausbiz
After months of uncertainty driven, in part, by the Federal Reserve’s earlier comments surrounding a “transitory” inflation scenario, the Fed’s Chairman Jerome Powell delivered a very clear message to investors: rates would need to remain moderately restrictive for some time as the central bank continues its battle to restore credibility and price stability. This message seemed to fly in the face of the broader market consensus, which began to price in a dovish pivot. And naturally, this has had a meaningful impact on the outlook for equities and bonds. Isaac Poole from Oreana Financial Services joins us to discuss portfolio construction and the assets he’s looking at right now. Isaac says that now is “not the time to be lightening up on equities”, though there will be a time to sell over the next two or so years – particularly as recession risks increase. He also says that it’s the unloved sectors of the market that have been hurt by recessionary expectations (think the consumer discretionary space) that provide investors with some upside over the next 18 months – in Australia and beyond.
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