13
September 2023
Investment & Economic Strategy Lunch
Asset Class
CH View
End 2024
Short term defensive characteristics, offset by higher levels of inflation ‘eating’ away at purchasing power.
Cash
In preparation for an RBA pause and eventual easing, we have been selectively adding some highly rated (AA/AAA) fixed bond (duration) to the Interest-Bearing strategy. • With maturities between 3 to 7 years, we are locking in the current attractive yields for highly rated securities. Infrastructure spending, general fiscal intervention and energy transition are long-term tailwinds for cyclicals, but short-term recessionary risks are elevated. • Adding opportunistic, attractively valued cyclicals to equity portfolios. Return to higher immigration, onshoring, supply shortage will increase the demand for warehouse/logistics assets. • Moderating long bond rates and growth in face rents will support asset prices.
Bonds
Equities
Property
© 2023 Cameron Harrison Pty Ltd
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