Outlook for Investment Markets
World equity markets have been see-sawing between optimism and anxiety, most recently towards anxiety, with little progress for world shares and gains for more defensive assets – local and international property, bonds and infrastructure.
More of the same looks in prospect: although the global business outlook is slowly improving (with marked regional variations), the relatively expensive valuations of growth assets leave them vulnerable to adverse political shocks or economic surprises. In New Zealand, the economic cycle remains robust, though again shares may be overpricing the good times ahead.
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