Oliver’s Insights – Profits and the Australian economy – not bad!
The profit reporting season that just ended was reasonably good with profit growth expectations affirmed.
· While June quarter GDP growth slowed, it reflects pay back for unbelievably strong March quarter growth. Forward looking indicators point to a gradual pick-up in demand driven by a rebalancing in the economy.
· The combination of improving growth and low interest rates suggest the trend in Australian shares remains up.