Morningstar Market Commentary
Sharemarkets have been weak – more so overseas than at home – as investors have fretted over the 'fiscal cliff' in the United States and the Eurozone's ongoing debt issues. Bonds have been a beneficiary, yields dropping as investors looked for defensive safety. Looking ahead, political risks predominate: investors need to see a political agreement on US fiscal policy and political progress with the Eurozone's debt and reform issues. If these hurdles are cleared, the economic prospects for the global and local economies are reasonable, and growth assets could perform well. But it remains a big 'if'.
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