Market outlook for 2026-27
Hi James & team, Thanks again for the excellent market insights you provide each week. I find the service highly informative and valuable. MM appears to be maintaining a constructive outlook for the remainder of 2026, with a ‘buy the dip’ approach regularly articulated in your daily reports. How does MM reconcile that view with what appears to be a less supportive Australian macro backdrop: sticky inflation driven by prolonged elevated fiscal spending, high immigration-driven demand, and rising energy costs; the prospect of further RBA tightening, with market expectations suggesting two or three rate increases by December; increasing pressure on household disposable income; and likely fiscal restraint and/or tax changes from the Federal Government? If these pressures persist, why shouldn’t investors expect slower growth, weaker consumer demand, margin compression, and rising recession risk, rather than a supportive environment for equities over the next 6–12 months? Regards Andrew
