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.