The real G20 lesson for investors

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There is one lesson Australian investors should take from the weekend’s G20. It’s not the obvious one that talk shops of this nature always disappoint. Nor is it in the expectation of any lift in prospective growth for the world given that all of the agreed initiatives are actually already known domestic agendas reshaped and rubber stamped at the forum. It’s certainly not in the spurious gains of FTAs.

It’s not even that the world has made a paradigm shift towards greater action on climate change, given the most obvious impact of that – the long term destruction of the Australian coal sector – is already locked in and well understood.

The lesson is this: The Abbott Government is not up to the job and that has very important and near term consequences for Australian asset classes.

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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.