Credit Suisse positive on Australia
Credit Suisse has revealed it remains relatively positive about investment in Australia notwithstanding the fact that many of the key business indicators are turning negative.
In an investment strategy analysis released this week, Credit Suisse has revealed it has adopted the following sector exposures — overweight domestic defensives, overweight banks, neutral on healthcare, underweight capex, underweight resources and underweight on listed property trusts.
It said the Australian economy was slowing and that the leading indicators pointed to job losses over the next few months while the capital expenditure outlook had deteriorated.
“There are risks of house price declines if credit supply remains tight and the labour market weakens,” the Credit Suisse analysis said. “That said, the Federal Government and the Reserve Bank of Australia have responded by easing policy settings very aggressively, insulating the economy from the effects of global de-leveraging.”
AUTHOR
Mike Taylor
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