FT LEX butchers Australian outlook

Advertisement

The FT’s always provocative LEX column did Australia today:

Sometimes, confidence is enough to make it through testing times. This week, the ANZ and Roy Morgan consumer confidence gauge showed Australians at their most upbeat since late 2013. While it is tempting to infer a market recovery, too, confidence alone cannot galvanise a rally. Australia needs investment.

As interest rates have fallen, the Australian market’s main appeal has been its dividend yield. Encouraged by large pension funds, its yield has been among the highest in the world at 4.3 per cent, matching Spain and Norway, and higher than the US at 2.2 per cent and the UK (3.8).

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.