Share market recovery in 2009 less likely
It is no longer certain that there will be a recovery in the share market in the second half of this year, according to David Hudson, the chairman of the asset allocation committee at BlackRock Investments.
Speaking at a BlackRock Investment Management annual luncheon seminar for advisers, Hudson said investors were less optimistic about a recovery in the share market this year. The Australian economy could get back into better shape, but China would be pivotal to achieving that, he said.
“China must re-spark its economy,” Hudson said.
Hudson also said he expected Asian equities to outperform the developed share markets this year. Asia already went through its credit crisis and did not have exposure to the toxic assets that the US and European markets are dealing with.
Listed growth assets would also bottom half way through the year while resources would also underperform, Hudson said. The Australian current account deficit would also matter to the currency markets when there is no capital, he added.
Hudson said he also expects the US to outperform European equities due to the complexities of the European Union causing a lag in responses to the share market.
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
