UBS maintains a constructive 12-month outlook for Australian equities but recommends a defensive portfolio tilt. The firm cites reasonable valuations despite near-term headwinds from high inflation and moderating economic growth.
Key Takeaways
- 1.UBS remains constructive on Australian equities over the next 12 months despite near-term macro risks.
- 2.The firm maintains a defensive portfolio tilt, favoring quality, diversified miners, financials, and staples.
- 3.The RBA is expected to hike rates by another 25bps at the August meeting, though a pause remains possible.
Table of Contents
- CIO View: Australian equities
- Central scenario
- Global Asset Class Preference
- Upside scenario
- Downside scenario
- Global asset class preferences definitions
- Appendix
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Authors
Wayne GordonKayden Lee
Securities
S&P/ASX 200 Index
Themes
Inflation and monetary policyDefensive positioningGeopolitical risk (Middle East)China demand for commodities
Regions
Asia PacificMiddle EastAustraliaChina