Australian Shares

Wilson: Stock prices only go up

David Llewellyn-Smith
Wednesday, 22 July 2020
Advertisement

Matthew Haupt is a lead portfolio manager at Wilson Asset Management at the AFR:

Highly complex and unpredictable, a second wave effect is likely to lead to one of three outcomes:

  1. The virus takes hold and economic conditions deteriorate.
  2. Governments alternate between opening and closing economies.
  3. The virus is contained, driving a strong economic recovery.

Each of these economic outcomes support a bull market view of equities in financial year 2021 but the composition of market returns will be markedly different with each outcome.

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
Twitter Share
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.