NAVIGATING MARKET CURRENTS

CIO MONTHLY | JULY 2016

The saying goes you can't drive a car by looking in the rear-view mirror, and the volatility we've seen in markets so far this year is evident that this also extends to investing.


2016 has been an eventful year where we've seen a major sell-off in Chinese equities, the US Federal Reserve flip-flopping on its economic outlook, a surprise decision by the United Kingdom to depart the European Union, and volatility in crude oil prices. Throughout all this uncertainty and surprise, the Australian economy actually surprised to the upside with a 3.1% annualised growth rate during Q1 2016. 

With this in mind, this article looks at how investors can navigate market currents, and identifies four key themes which we believe will drive financial markets for he remainder of the year.