This week we share six charts we are watching right now on the Australian equity market. The outlook for the Australian equity market in isolation remains quite encouraging, despite the current geopolitical tensions. Year to date, the Australian market is down -5% vs MSCI World index in A$ which has fallen -10%.

Markets remain on edge as Russia’s invasion of Ukraine combined with ongoing concerns around inflation and interest rates continue to create volatile conditions. While we have some tactical caution, we retain our constructive 12-month outlook for domestic (preferred) and global equities. Here we delve into the wall of worry.

Australian companies have delivered a reasonable reporting season against a highly uncertain operating backdrop. We look at what’s driving this performance and share the changes we’ve made to the Wilsons Australian Equity Focus List against this backdrop.

While equity markets remain on edge over the outlook for global inflation and more recently the Russia Ukraine situation, the robust global earnings picture continues to provide a degree of underlying support to the equity market outlook.

The higher inflation narrative caught up with global markets in January this year. We look at some of the ways investors can position for the prospect of higher inflation (and interest rates) and examine some of the inflation beneficiaries.

Our quarterly managed funds report outlines the pathway best-suited to deliver on our current asset allocation strategy.

Following results updates from all four major banks this month, we outline our case for why investors should be market weight the major banks and share the three core issues we believe investors will focus on over the next 6-12 months.

Off the back of the RBA’s release of its Quarterly Statement of Monetary Policy, we share our domestic economic outlook, speaking to the inflation and interest rate outlook and the implications for asset markets.