From Gerard Minack at BS:
“On a one or two-year view, I think a global recession is on the cards. And it’s not so much the thought of recession that’s scary, but that there’s almost no policy tools left to respond to such an event…Bonds and cash are where investors should be looking to park their money in the current environment, as part of a balanced portfolio.
While he says a recession is on the cards for Australia, Minack is not telling clients to position for one just yet.
“But in the second half of the year we’re going to have to face up to ongoing declines in mining capex, the wind down in the domestic car industry, and the housing boost diminishing. There are plenty of risks out there and we’re continuing to struggle with what was a once-in-a-century commodity boom.”
You de man, Gerard.
