Please click the link below to view Shane Oliver's review of 2018 and outlook for 2019.
Key points raised are:
- 2018 saw reasonable global economic and profit growth and still low interest rates
- But it has been a rough year for investors with worries about the US Fed, trade wars and global growth causing volatility and poor returns
- 2019 is unlikely to see the plunge into recession many fear with growth likely to stabilise supporting profit growth, the Fed is likely to undertake a pause in rate hikes and global monetary policy is likely to remain easy. The RBA is expected to cut interest rates.
- Against this backdrop share market volatility will likely remain high but markets should start to improve through the year.
- The main things to keep an eye on are, the risks around the US Fed, US/China tensions, global growth, Chinese growth and the property price downturn in Australia.