Paul Parsons, Portfolio Manager/Analyst at Northcape Capital and Warakirri’s Australian Equities funds says despite an uncertain backdrop, the operating environment has been good for Australian companies in 2023.
Click below for Paul’s outlook where he considers the drivers for equities in 2024 and why taking a “quality” approach to company selection is the key in a volatile environment.
Australian Equities Outlook - https://lnkd.in/g9gQQFhX#equities#marketoutlook
In 2023 so far, we've actually seen a pretty good operating environment for Australian companies and that's because we've seen very low unemployment. So demand for products has remained pretty strong domestically. In addition to that, we've actually seen good robust demand for our exports into key markets and a lower Australian dollar has helped with competitiveness there. So a pretty favourable backdrop. Unfortunately, as the year has transpired, we've seen more and more concern by market participants over the outlook and really that centered around higher interest rates, higher inflation and then the spectre of geopolitical tensions weighing on markets as well. So pretty good operating environment, but certainly some dark clouds on the horizon.
