CATCH THE RECOVERY WAVE

In an unpredictable year that will go down in the history books, Covid-19 and its tumultuous impact on stock-markets took most investors by surprise. And equities ended 2020 almost at the same level as they were at the beginning of the year. But 2021 marks a fresh start, and it should be a strong year for the stockmarket and economy, as investors look to a post-pandemic world.

Australia’s economic growth is set to exceed prior gloomy expectations as restrictions ease, borders re-open and vaccines are rolled out. This is at a time when business and consumer confidence is rebounding, interest rates are at a record low and savings rates are at a record high, encouraging spending and borrowing. At the same time, global governments and central banks are stimulating their economies and increasing infrastructure spending (on roads, rail, government buildings, etc), which boosts demand for Aussie commodities (namely iron ore, copper and nickel).

These are all reasons why