Australian Shares, Investments

Positive outlook for companies in 2024

Tribeca Investment Partners Jun Bei Liu Australian companies

The ASX reporting season has shown company investment returns in 2024 will be better than those generated in the previous year.

Despite concerns about a possible economic downturn, earnings reports from companies listed on the Australian Securities Exchange (ASX) indicate they are poised to produce better results in 2024 compared to last year, according to an investment firm.

Tribeca Investment Partners Alpha Plus Fund lead portfolio manager Jun Bei Liu highlighted a combination of factors has contributed to the prediction Australian listed companies are well positioned to handle any potential growth slowdowns.

“Interest rates are likely at peak, economic growth has remained resilient, inflation is falling, house prices have not collapsed, mortgage defaults have not become systemic and the list goes on,” Liu noted.

“Corporates remain cautious, but fiscal 2024 is likely to be better than fiscal 2023. There is a rolling slowdown underway, rather than an abrupt shock that has impacted all corporates at the same time and to the same degree.

“This is good for investors as it means there are pockets of strength – for instance in infrastructure, mining services and technology – to offset pockets of weakness, such as in consumer and cyclicals.

“Despite sell-offs in areas which have disappointed – as we have seen with consumer staple companies Woolworths and Domino’s – there is no loss of faith in the overall outlook as tends to happen when there are fears of capitulation.”

Notwithstanding economic uncertainty, she acknowledged strong investor interest in shares signalled a positive trajectory for the market going forward.

“There appears to be a strong willingness to buy the equity market, including cyclical stocks, and to accept that even for areas where further weakness is expected, they can be purchased at the right price,” she said.

“This bodes well for the market and suggests that signs of further improvement will be greeted positively even if they come against a backdrop that remains a little uncertain.

“Certainly the mood of investors is more hopeful than fearful and, as witnessed in 2023, this is a very powerful mechanism to limit market downside and drive further strength.”


Our Story

selfmanagedsuper is the definitive publication covering Australia’s SMSF sector. It uniquely offers online content tailored separately for SMSF professionals and individual trustees participating in the fastest growing and largest sector of the superannuation industry. As such, it is a must read for those wanting to stay informed about the latest news, regulatory developments, technical strategies, investments, compliance, legal and administration issues concerning SMSFs.

Copyright © SMS Trustee News 2024

ABN 43 564 725 109

Benchmark Media

Site design Red Cloud Digital