Focus on quality with cash standing by

In our latest Insight we discuss how global economic fundamentals remain reasonably healthy with each key region exhibiting solid mild expansion.

The United States however is more advanced in its cycle than most and the pace of growth should slow somewhat through next year as interest rates rise and jobs growth slows.

Companies across the globe are accepting revenue and earnings growth opportunities. Capital spending that may boost productivity and enhance potential growth rates is yet to rise substantially but should accelerate somewhat as the recovery progresses.

Trade conflict and protectionism more broadly has threatened the outlook but is yet to materially impact activity. Political rhetoric has typically been more menacing than eventual actions.

Investors must be watchful for likely selloffs in risk assets. With additional cash on hand we stand ready to snap up opportunities to buy high-quality assets more cheaply should the market provide opportunities.

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I hope you find the article interesting and helpful in furthering your investment goals.  

Please let me know if you have any questions. 

A version of the article was first published in SMSF Adviser Magazine. It is provided for general information purposes only and should not be construed as personal financial advice.