Emanuel Datt

Australian investors face a particularly complex and difficult environment next quarter according to Australian equities investment manager Datt Capital.

Emanuel Datt, Founder and Chief Investment Officer, Datt Capital says: “It’s somewhat of a minefield facing local investors and indeed investors across the globe. A number of commentators and analysts have observed that the current investment outlook favours an active management approach, and we concur,” says Datt.

“In our view there are a multitude of issues that investors should remain vigilant in respect of over the coming months, including the almost inexorable pace of interest rate rises that are expected in the US and in Australia. We anticipate that the RBA will continue on with its frenetic pace and continue to raise rates at 50bps rises each month until the end of the calendar year.

“The geopolitical risks will remain including the risk of Russia cutting off the flow of gas and other energy products to Europe during the northern hemisphere’s winter, which will have a devastating effect on the continent’s industrial capacity. The risk of escalation between China and Taiwan, which may accumulate into the weaponisation of rare earths via the restriction of supply is also a possibility.  China has a market share of ~90% of downstream rare earth supply globally.

“And let’s not forget the continuing fears of inflationary pressure for the average citizen amid a paucity of labour supply. The potential for a decreasing ‘wealth effect’ as higher interest rates flow through to asset pricing, especially in lower residential real estate values, will impact a broad range of investors,” says Datt.

Please join Emanuel Datt to discuss these issues and approaches to deal with them in an investment webinar this Wednesday September 21 at 11.00 am.

Register for the webinar.

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