Insights

This article looks at some of the current challenges faced by the consumer market and explores macroeconomic trends affecting the market.

Touchstone’s Portfolio Specialist, Ron Sargeant, speaks with Bennelong Account Director, Holly Old, about current consumer spending and what it means for the economy, why secular stagnation matters, the impact of higher earnings, and Touchstone’s cautious outlook for reporting season.

In mid-2021, Touchstone developed the view that inflation would move higher and become more persistent than was widely expected. We thought this would, in turn, see central banks increase interest rates to levels well above market forecasts. 

Touchstone Asset Management has promoted Blake Dowsett to the newly created role of Head of Research.

Bennelong Account Director, Dave Whitby, speaks with Touchstone’s Portfolio Specialist, Ron Sargeant, about the recent reporting season, what we can expect from markets for the remainder of the year, and Touchstone’s current portfolio positioning.

In the post GFC environment, many investors focused principally on one number during reporting season – revenue growth.

The real economic impact of higher interest rates will start to hit home in the first half of 2023, resulting in households reducing spending and many corporates’ earnings revising materially lower during the course of next year, says Ron Sargeant, portfolio specialist at Touchstone Asset Management.