Macro: Sandcastle economics
- The concept of a "two-lane economy" highlights disparities where some sectors thrive and others struggle with high interest rates, complicating monetary policy decisions.
- We are positive on equities, with a tilt towards Europe, short duration bonds, commodities, especially energy, and risk-on currencies such as AUD and NZD.
- Economic stability is fragile longer-term due to unsustainable US fiscal policies, geopolitical risks, increasing healthcare costs, and demographic trends.
Peter Garnry,
Chief Investment Strategist
