Mr Parker has more than 30 years’ experience in a series of economics, portfolio management and communications roles at a range of firms including Rothschild, JP Morgan, Citigroup, MLC, and the Reserve Bank of Australia. He joined ART in 2015.

Below, Mr Parker previews the current domestic and global situations, and what opportunities exist for businesses and ART’s own investment strategies. To find out more, secure your registration here.

1. In 2022, the post-pandemic economic tide started turning, characterised by interest rate rises from record lows, Ukraine-Russia conflict and skills and materials shortages. Are we in a worse position now especially amid another global conflict?

I wouldn’t say worse – different, but not worse. The conflict in Israel and Gaza is another reminder that geopolitical risk is going to remain a source of volatility and uncertainty for financial markets and for business. Even if peace were to break out today in both the Middle East and Ukraine, the global geopolitical environment is likely to remain a fraught one. And even though the global economy has held up reasonably well in the face of sharply higher interest rates and geopolitical developments, I fear that doesn’t last – economic conditions probably get worse from here.

2. Following the most recent interest rate rise on Melbourne Cup Day, when can we expect to see some relief?

Not for a while yet! The RBA will need to be very confident that inflation is going to return to target range and stay there before we see rates start to come down. And that means that they’ll want to see some further softening in the economy – particularly in the labour market where conditions are still pretty tight. It doesn’t mean inflation necessarily has to be within the band – just clearly heading there.

3. From your perspective how is the business landscape in Australia managing? Is it remaining resilient?

If we look at the key business surveys, confidence is a little below longer-term averages, but business conditions, even though they’ve softened over the past year or so are still running above long-term averages. That’s not to say things are entirely rosy – for example, there are still issues around the availability of labour in a range of industries – but overall, the picture doesn’t look too bad at this point.

4. Can businesses in a strong financial position pursue aggressive growth or is now not the time?

If the economy does deteriorate markedly from here, you’re likely to see certain businesses get into trouble and, in that kind of environment, there are likely to be opportunities for businesses that remain financially strong to pursue growth strategies – acquiring other businesses and assets at attractive prices.

5. How has ART had to adapt its own investment strategy in the past year?

We’re still finding good opportunities to put members’ money to work – particularly in the private assets space – real estate, infrastructure, private equity and private debt. Perhaps the most significant change for us is in fixed income markets, where the sharp rise in bond yields over the past couple of years has improved the future returns from bonds. And we’ve certainly taken advantage of those opportunities.

Mr Parker will discuss this and more on Friday, 24 November 10:30am-11:15am in a complimentary webinar that will include an interactive Q&A session. He will also be joined by Mike Smith, Business Development Manager, ART as MC.

For more information and registration visit Victorian Chamber and Australian Retirement Trust: Investment Webinar or if you would like to find out more about ART visit art.com.au

Disclaimer

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