ausbiz | Activam’s Equity Market Outlook

Robert Talevski from Activam Group provides insights on the ongoing momentum in US equity markets post-Trump's re-election. He observes that valuations are elevated, driven by anticipation of further tax and interest rate cuts. Robert notes that US markets are trading above historical averages.

He highlights solid fundamentals, expecting 5% earnings growth for Q3, while mentioning strong consumer resilience post-election. Robert identifies potential challenges with anticipated tariffs and their potential impact on consumer confidence. US retail sales show robustness with 5% growth, but questions remain for lower-end consumers.

Discussing small and mid-cap opportunities, he notes their attractive valuation and potential relative to large caps. As the Australian market approaches a traditionally quieter period, Robert points to rate cut expectations as a potential confidence booster for the new year, despite flat earnings domestically and concerns about China’s demand for commodities.