Invest
Investors urged to be cautious of overstated US growth projections
Investors should be wary of projected US growth as optimism regarding inflation and the subsequent trajectory of the Federal Funds Rate may be overstated, investment managers say.
Investors urged to be cautious of overstated US growth projections
Investors should be wary of projected US growth as optimism regarding inflation and the subsequent trajectory of the Federal Funds Rate may be overstated, investment managers say.

According to Western Asset chief investment officer Ken Leech, the Federal Reserve’s upbeat outlook about growth, which seems to be shared by the bond market, may result in further volatility should a rate hike be implemented ahead of the market being ready.
“We view optimism about US growth as a bit overdone… we expect [it] to slow slightly next year with inflation remaining moderate,” he says.
“Global monetary policy will continue to play a major role in the recovery… We expect more volatility such as that we saw this year should central banks misjudge the market or mishandle communication regarding policy moves.”
Global investment company Legg Mason Investment says the real pace of economic growth is likely to dictate the movements of interest rates in 2019.

Although the 5-year, 5-year Forward Rate of the US Treasury mirrors such positive sentiment, suggesting a rate scenario significantly higher than the Fed’s current estimate of 3.1 per cent in 2019, investment managers say this might be reflective of optimistic bias inspired by strong US growth this year.
Francis Scotland, director of global macro research at Brandywine Global, says there are reasons to believe that growth could be more moderate as fiscal stimulus dwindles and rate hikes begin to sting.
“[T]he Trump tax cutting agenda has complicated the issue [of rate normalization] by rocketing American GDP growth higher, which could easily bias/pressure the Fed into thinking a rapid normalization is appropriate,” he says.
“But there are a host of reasons for believing that normalization will play out over a very long time frame.”

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