In the latest Oliver’s Insights, Dr Shane Oliver looks at where we are in the global investment cycle and comparisons between today and the period prior tot he 1987 share market crash.
The key points are as follows:
- There is still little sign of the sort of excesses that precede major economic downturns and major bear markets suggesting that (although US shares are overdue a decent correction) we are still a fair way from the top in the investment cycle.
- Key to watch will be rising inflation and aggressive monetary tightening.
- The current environment around share markets is very different to 1987.