From Capital Economics today on the RBA and AUD:
- An apparent wilting desire to raise interest rates
- probably won’t raise rates until late in 2019. If anything, the chances have increased that rates won’t be raised until 2020.
- That could contribute to a further weakening of the Australian dollar from US$0.74 now to US$0.72, or below, by the end of this year.
MB remains on 70 cents for this year. 65 for next. Next move for RBA is to cut.
David Llewellyn-Smith is the chief strategist at the MB Fund which is over-weight global equities that benefit from a weaker AUD. The first option is to use the MB Fund International Stocks Portfolio which is always 100% long as a part of your own asset allocation mix. The second option is to use an MB Fund tactical allocation in which we choose the asset mix for you, including exclusively international stocks, but with bonds and other assets as well to ensure a more conservative mix.
The recent performance of both is below:
If these themes interest you then contact us below.
The information on this blog contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance.
