The US election had earlier dominated attention. Donald Trump’s reluctance to
concede diverted attention from possible policy changes under the new Biden administration, but this will likely become an increasing focus
for investors in the months ahead.
Credit spreads narrowed sharply, both in Australia and overseas. This reflected optimism around the vaccines and a potential return to
‘normality’ in 2020, and supported returns from corporate bonds domestically and internationally.
The presidential election in the US on 5 November could dominate headlines during October, before the next meeting of the Federal Reserve later that same week. Investors are already debating whether a further reduction in borrowing costs in the US could be announced following this meeting.
The global economy is being shaped by conflicting triggers. These include productivity-boosting technology innovations, geopolitical tensions and the strident efforts of central banks to bring inflation under control. We examine the economic outlook and discuss the implications for your retirement savings.
.jpg){kind=logo}
