Scott Haslem, CIO of LGT Wealth Management Australia, tells Ausbiz that while the Middle East conflict has created significant uncertainty, he expects both the US and Iran are ultimately incentivised to reach a deal, meaning we may be past “peak hostilities” even if conditions remain volatile in the short term.
Against this backdrop, LGT is constructive on global equities and holds them overweight versus government bonds, but is cautious on Australia, where higher energy prices are colliding with rising interest rates, weak confidence and a likely economic slowdown; accordingly, they are underweight Australian equities and modestly overweight domestic government bonds and duration, anticipating RBA rate cuts from 2027.
Haslem also warns that Australian corporate earnings risks are not fully priced, expecting more negative updates and downgrades into confession season and the August reporting period.
Receive ongoing access to LGT Wealth Management’s insights and observations - a curated stream of thought leadership, market perspectives, and strategic updates designed to inform sophisticated investors.
