THE ECONOMY AND INVESTMENTS
His imposition of tariffs might yet result in considerable dislocation to world trade and a full-blown tariff war would have devastating consequences for China’s economy and therefore also to Australia. China is still growing its economy at a fast pace, but the country and its institutions carry a lot of debt.
However, despite potential pitfalls the basic outlook is still positive and hitherto share markets have done quite well this year. This should continue even if current valuations are a bit stretched.
The impending company reporting season is just getting under way and we should see further earnings growth and increased dividends on top of those reported half a year ago.
Commercial property should also continue to strengthen but now is not the time to think of adding to residential property investment. As far as cash investment is concerned there is very little sign of light at the end of the tunnel. Interest rates are rising in the US but most analysts are continuing to extend the timing of any expected rises here, even in to 2020.