14 Feb Investment outlook Q&A
Key Points:
- Rate hikes have worked in helping slow inflation and rate cuts are likely this year. Expect a bumpy ride though.
- The risk of recession remains high at around 40% in the US and Australia.
- Geopolitical risk including around the US election remains high but it’s often easy to get gloomy regarding geopolitics.
- Share valuations are a bit stretched pointing to the risk of more volatile and constrained returns, but shares should ultimately be okay as interest rates come down.