The attached note looks at the recent pull back in investment markets and renewed uncertainty regarding the outlook. The key points are as follows:
It's still too early to say that the pull back in share markets is over. Some of the worries around US fiscal policy and politics, China, global supply constraints and central banks likely have further to run and could see the correction go further.
Historically the main driver of whether we see a correction or a mild bear market, as opposed to a major bear market, is whether we see a recession. While it may take time, ultimately, we see the current worries being resolved in a way that does not severely threaten global or Australian growth.
So, we continue to see the broader trend in global and Australian shares remaining up once the correction runs its course.