Investment Watch is a quarterly publication that delves into key insights for equity and economic strategy. This edition arrives as markets enter the final quarter of 2026 facing higher interest rates for longer. Renewed tension in the Middle East has pushed energy prices back up, and the RBA and US Federal Reserve have both responded by raising rates.

Investment Watch is a quarterly publication that delves into key insights for equity and economic strategy. 

This edition arrives as markets enter the final quarter of 2026 facing higher interest rates for longer. Renewed tension in the Middle East has pushed energy prices back up, and the RBA and US Federal Reserve have both responded by raising rates. That has unsettled shares and bonds alike, but we see it as a reset in the cost of money rather than the start of a downturn. The global economy is still growing and company earnings remain strong, which is why we stay the course.

What has changed is the opportunity in income. After this year's sell-off, high-quality bonds offer their most attractive yields in years, and cash is again paying more than inflation. Our approach for Q4 is to rebuild reliable income, be more selective in where we take risk, and broaden diversification so portfolios are not relying on any single asset to do the heavy lifting.

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Morgans clients receive exclusive insights such as access to our latest Investment Watch publication. Contact us today to begin your journey with Morgans. 

      
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Australia’s March CPI surprised to the upside, but underlying inflation remains stubbornly above target. With public‑sector inflation proving persistent and fuel prices pushing tradables higher, interest rates look set to rise further.
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Inflation and rate hikes are back in focus, raising concerns about Australia’s economic outlook. Strong export prices and sustained energy demand suggest this cycle may play out differently.
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