The creeping reality of higher interest rates and a weak Australian dollar means sharemarket investors should position themselves in banks, but avoid other interest rate sensitive sectors such as real estate, according to JPMorgan.
Just a US5¢ appreciation in the currency would immediately boost earnings for companies such as Qantas, whose costs are denominated in US dollars, but reports revenue in Australian dollar terms.
Loading...
Tom Richardson writes and comments on markets including equities, debt, crypto, software, banking, payments, and regulation. He worked in asset management at Bank of New York Mellon and is a member of the CFA Society of the UK as a holder of the Investment Management Certificate. Connect with Tom on Twitter. Email Tom at tom.richardson@afr.com
