In an edition of Oliver’s Insights published in April, Dr Shane Oliver gave his view on where we are in the investment cycle.

Key points of the article included:

  • While corrections are inevitable, we still appear to be a long way from the peak in the investment cycle.
  • Shares are not unambiguously overvalued and on some measures are still cheap, uneven and below trend global and Australian growth is extending the economic recovery cycle, monetary conditions look set to remain easy and investors are far from euphoric.

He also gave his views on investment implications, saying that while corrections should be anticipated – with Greece and the Fed being potential triggers – we appear to be a long way from the peak in the investment cycle.  Secondly, while the US shares register as expensive on some metrics this is not like 2000 when all markets were expensive.  And finally, while Australian shares should do okay this year better opportunities still lie abroad where the slump in commodity prices is not a drag on growth but rather a positive.

To read the article in full please CLICK HERE