HomeNewsNewsDavid Bassanese: What lies ahead for Australia’s economy and stock market as storm clouds keep brewing?

David Bassanese: What lies ahead for Australia’s economy and stock market as storm clouds keep brewing?

  • BetaShares chief economist David Bassanese said Australia’s economy remains in strong position at the moment
  • Weakening economic indicators and the US factor may have a factor on Australian equities moving forward
  • Fixed income looking strong with the ‘bond market blood bath’ showing signs of recovery with good yields

It’s a funny beast the economy and stock market game. In fact it’s more like a marriage with vows of for better for worse, in sickness and health. There is a binding relationship between the two with economic activity strongly impacting the stock market.

A rising stock market is usually associated with a growing economy, which in turn leads to greater investor confidence. But the opposite also happens with a downturn in the economy leading to a fall in equity markets and waning investor confidence.

And like any partnership or marriage sometimes the two are…

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