Invest
Global equity growth strong despite US drag
Equity markets around the world appear to be picking up despite US growth having “come off the boil” in recent weeks, according to Morningstar.
Global equity growth strong despite US drag
Equity markets around the world appear to be picking up despite US growth having “come off the boil” in recent weeks, according to Morningstar.

The research house said equity market gains from the recent ‘Trump trade’ – which saw shares rally and bonds sell off in the wake of US President Donald Trump’s election victory – had begun to weaken “as investors have reassessed the Trump administration’s ability to implement its economic agenda”.
US equities have stalled since around the middle of March, Morningstar said, though the earlier gains have put the S&P 500 up 4.9 per cent for the year to date.
“More positively, recent data suggest that the world economy is strengthening, which is supportive of growth assets,” Morningstar said.
The research house noted that the eurozone economy had seen an improvement and that emerging markets have “continued to outperform”, with the FTSE Eurofirst 300 index and the MSCI Emerging Markets index up 3.9 per cent and 7.8 per cent respectively for the year.

“The most recent survey data suggest that while the pace of growth in the US may have come off the boil, improved prospects elsewhere have helped the global economy to keep growing,” the research house said.
“Whatever temporary slowdown is occurring in the US has been counterbalanced by upturns elsewhere, particularly in the strengthening eurozone economy.”
A number of downside risks however remain, and Morningstar noted the International Monetary Fund had listed “protectionism, uncertainty around the US policy agenda, financial sector fragilities, potential setbacks to emerging markets, ongoing problems in the weaker eurozone countries and non-economic factors” as six primary challenges facing markets.
“Unfortunately, global equity markets appear to be putting a low probability on any of these risks materialising in a meaningful way,” Morningstar cautioned.
“Investors continue to pay high valuations by historical standards for equities, especially in the US, and the VIX [Chicago Board Options Exchange Volatility Index] measure of expected US share market volatility remains at unusually low levels, despite (for example) the unexpected US air strikes on Syria, which worsened US-Russia relations, or the current heightened tension over North Korea.”
Morningstar said the outlook was reasonably supportive of equity performance but that this remained susceptible “to reassessments of the value on offer and to risks materialising that investors do not currently seem to be prepared for”.

Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more

Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more