Asset Allocation Strategy
Australian Equities: Underappreciated in a Global Context
Mon 9th November, 2020

The backdrop for the Australian equity market is getting incrementally more positive as the market attempts to break out of its range trading pattern of the past 5 months. We upgraded Australia to overweight versus global equities in mid-October, and support for the local market looks to have built over the past few weeks. 

In the past month we have seen:

  • A very supportive Federal Budget (11% of GDP in support)
  • Further monetary stimulus from the RBA, including a move to a full-scale quantitative easing (QE) program
  • Improving local COVID-19 containment trends (Victoria) at the same time as US and European infection rates have accelerated
  • AGM season is showing some rays of light in terms of better than feared earnings performance

      In this week’s macroeconomic view we delve into:

      • The factors driving growing support for the local market
      • The fiscal and monetary policy in place for “extended” economic support
      • The attraction to Australia as a lower risk reopening play

          Disclaimer and disclosures

          Recommendation structure, definitions and the Financial Services Guide (“FSG”) can be found at


          This document has been prepared by Wilsons Advisory and Stockbroking Limited (AFSL 238375, ABN 68 010 529 665) (“Wilsons”) and its authors without consultation with any third parties, nor is Wilsons authorised to provide any information or make any representation or warranty on behalf of such parties. Any opinions contained in this document are subject to change and do not necessarily reflect the views of Wilsons. This document has not been prepared or reviewed by Wilsons' Research Department and does not constitute investment research. Wilsons makes no representation or warranty, express or implied, as to the accuracy or completeness of the information and opinions contained therein, and no reliance should be placed on this document in making any investment decision. Any projections contained in this communication are estimates only. Such projections are subject to market influences and contingent upon matters outside the control of Wilsons and therefore may not be realised in the future. Past performance is not an indication of future performance.

          In preparing the information in this document Wilsons did not take into consideration the investment objectives, financial situation or particular needs of any particular investor. Any advice contained in this document is general advice only. Before making any investment decision, you should consider your own investment needs and objectives and should seek financial advice. You should consider the Product Disclosure Statement or prospectus in deciding whether to acquire a product. The Product Disclosure Statement or Prospectus is available through your financial adviser.

          Wilsons and Wilsons Corporate Finance Limited (ABN 65 057 547 323, AFSL 238 383) and their associates may have received and may continue to receive fees from any company or companies referred to in this document (the “Companies”) in relation to corporate advisory, underwriting or other professional investment services. The directors of Wilsons advise that at the date of this report they and their associates may have relevant interests in the securities of the Companies. Please see relevant Wilsons disclosures at

          • Share This Article

          Written by

          David Cassidy , Head of Investment Strategy

          David is one of Australia’s leading investment strategists.

          Related articles