Strap on your seat belt into year end

Roni Green of GF Asset Management shares his perspective on several economic factors. He initially demonstrates unexpectedness concerning the diminished consumer sentiment poll result, despite the halt from the Reserve Bank of Australia.

As Roni delves into the challenging circumstances faced by consumers, he forecasts potential turbulence ahead due to expected expenditures. He spotlights how an increase in mortgage rates from the Reserve Bank of Australia could influence household budgets. Turning his attention to the American market post-Labour Day, Roni identifies a robust corporate bond supply and daily billions worth of U.S. Treasury issuances. Despite the strain this imposes on the rates market, he still perceives fortitude and narrow credit spreads in the bond market, interpreting it as a signal that the market is prepared to accept more supply. He also points out that top-tier companies are adopting the narrative of a gentle economic downturn.

Lastly, Roni contemplates the potential for a growth tendency in the CPI owing to elevated oil and gas prices. He voices his concern over potential volatility in the economic environment.