Consumer confidence

That is a fair drop for the ANZ-RM consumer confidence print.

It is at odds with the level of the market, in general, & with some of the sector specifics (e.g. the strength in discretionary retail) as well as broader metrics like credit demand for housing, in which purchases are typically only undertaken if the buyer has confidence in employment and income prospects over the medium to longer run.

COVID effects (illness, supplies) writ large. When people respond to the survey against a backdrop of daily cases in the 10’s of 1000’s, it isn’t especially surprising.

Still we are mindful that confidence is one of our better macro market timing indicators (DAA timing device) and as such use it as part justification for our modest UW to Australian equities.

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This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.

Please note that past performance is not a reliable indicator of future performance.

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