Quality and diversity counter uncertainty and high-flying markets
In our latest article, we discuss how despite the challenges, economic recovery continues from almost total global shutdown in the first half of last year.
The pace of growth is likely to slow after the initial burst, but company earnings are being supported by rising revenue, operating leverage and automation offsetting higher input costs.
Recession risk is low in the near term given improved management of the virus, elevated savings and confidence, supportive monetary and fiscal policy and rising employment, investment and debt.
Our portfolios are structured to benefit from further economic growth and risk asset appreciation. As general market prices rise, we press more toward the most outstanding sustainable growth businesses possessing pricing power and rising dividends.
However, we continue to find value in some areas where the market is underappreciating the leverage to the cyclical recovery.
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 this article first appeared in SMSF Adviser Magazine.
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This article is provided for general information purposes only and should not be construed as personal financial advice.
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