Frontier Market Update – May 2023

In this May market update, Wayne Sullivan and KCC Low say there have been further rate hikes by central banks and more bank collapses. In the US, labour markets are still strong and inflation is still elevated but slowing, and bank lending conditions have tightened materially which is expected to lead to the economy slowing down.

They discuss the prospect of the US Federal Reserve Board cutting rates later this year. In Australia interest rates continue to be increased by the RBA for similar reasons. They explain why the Australian housing market is still being supported by a range of factors. Lastly, they state their belief we are not at the bottom of the market, given the impact of higher mortgage rates has not yet flowed through.

Frontier Advisors provides asset consultancy services to the Trustee. The Trustee also engages Frontier Advisors to provide market and investments updates to members of First Super.

Frontier Advisors is responsible for the information in this presentation.