George Boubouras shares thoughts on recession fears in Australia

·

K2 Asset Management’s head of research George Boubouras has remained optimistic after the market retreat last week that erased billions of dollars in market value.

Boubouras has shifted his focus on areas of the market that are set to gain from central banks cutting rates. These include mid-cap stocks in healthcare, transport and consumer-related sectors.

He also expects lower borrowing costs to light a fire under highly geared businesses in property, utilities and infrastructure, which have been underperforming.

Boubouras said investors should expect a “shallow easing cycle” from the Fed, marking a stark departure from most fund managers and economists who are expecting the US to drastically cut interest rates in response to a slowdown in the world’s largest economy.

Photo: Bianca de Marchi / AAP.

He has also reinforced his perspective that the US and Australian economy is headed for a soft landing, despite fears of a recession.

Melburnian Boubouras justified this stance stating companies’ earnings overall are in “reasonable” shape and Australia’s economy will be a key beneficiary as global growth picks up in one year’s time.

Boubouras predicted that Australia’s Reserve Bank will cut rates twice in the first half of 2025 and that the easing cycle could be elongated because of the soft landing he expects across the developed world.

“Rate cuts don’t have to be quick and aggressive… They can come down very slowly or risk core inflation will re-accelerate,” he said.

Source: Financial Review.

Cretan Convention - Web Banner

Advertisement

Share:

KEEP UP TO DATE WITH TGH

By subscribing you accept our Terms of Service and Privacy Policy.

Advertisement

Latest News

Magna Graecia – Part 4: From Colony to Colossus: Syracuse and Hellenism in Sicily

Syracuse (in present-day Sicily) was founded in 734 BCE by settlers from Corinth and Tenea, led by their oikist (founder), Archias.

Scam no more: Protecting what’s most important with Evan Frangos

Hailing from Ikaria, Greece, Evan is also a Certified Cryptocurrency Investigator, specialising in recovering funds lost to scams and hacks.

Upcoming Sydney lecture will explore the Greek Civil War in Greek literature

The Greek Orthodox Community of NSW (GOCNSW) will delve into the history of the Greek Civil War as presented in Greek literature.

Greek olive oil in Japan: Health, heritage and authenticity

At the Olive Japan International Olive Oil Competition, Greek olive oils earned 12 Gold Medals and 36 Silvers.

The Greek island tourists haven’t overrun

Unlike Santorini, which draws up to 3.4 million visitors annually, the island of Kea remains largely under the radar.

You May Also Like

‘Antigone’: Elena Carapetis’ new play to feature at SA’s State Theatre Company

The State Theatre Company of SA has announced its 2022 season and among the list is Elena Carapetis with her play 'Antigone.'

Honorary Doctorate awarded to Ecumenical Patriarch Bartholomew during historic visit 

The University of Notre Dame Australia has awarded an Honorary Doctorate to His All-Holiness Ecumenical Patriarch Bartholomew.

Sydney unit block blamed for structural damage to Gary Papapetros’ car repair shop

Gary Papapetros, a Mascot mechanic, has said his workshop is falling apart due to structural damage caused by a neighbouring apartment block.