Despite record low interest rates and deferments, high principal repayments mean that Australian households still face a huge cash flow burden in the year ahead (shown in green line, Figure 1).

​Rising employment insecurity, falling house prices, no economic growth and reduced fiscal stimulus, all point to falling consumption. Placing a question mark over the current share market rally.

We have been cautious on the Australian economy for some time, reducing our allocation to Australian equities well before the pandemic began due to the weakened state of household finances and likelihood of persistent elevated unemployment over the medium term. We have since sold down Australian equities further on a selective stock and sector basis, based on their prospects in a post-COVID environment.

Cameron Harrison have been advising business owners and their families on asset allocation and intergenerational wealth management for over 50 years. We have demonstrated over a long period our ability to manage investments through both the good times and bad by keeping the client at the centre of our business.

For more information on our approach to investment strategy or any other inquiries, please contact us on +613 9655 5000.