We think Australian equities will remain rangebound as the tug-o-war between deteriorating domestic fundamentals clash with a solid global macroeconomic backdrop and a broadening AI thematic. This is not an encouraging outlook but neither is overly discouraging. Instead, all the price action will come below the headline index level as investors differentiate between areas which have further earnings and valuation risk versus areas which are underpinned by either structural tailwinds or are already priced for disappointment. Hear more form our CIO in this month’s Market Reflections update: Volatile and rangebound.
