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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Michael Knox explains how incoming Federal Reserve Chair nominee Kevin Warsh could lower the fed funds rate and weaken the US dollar without fuelling inflation. Warsh’s experience during the Global Financial Crisis shapes his belief that a long period of quantitative tightening can offset rate cuts and remove the moral hazard created by quantitative easing.
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Economics and markets
A clear explanation of why the RBA will likely need four rate hikes instead of two, driven by rising electricity prices, strong demand from immigration and ongoing federal deficit spending. Based on insights from Michael Knox, Morgans Chief Economist.
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Economics and markets
Jay Powell’s term is ending. Markets are watching Kevin Warsh and Kevin Hassett closely. Here’s what it means for US interest rates.
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Economics and markets
Australia’s households could face higher electricity costs and rising inflation in 2025. With electricity subsidies ending and energy supply constraints persisting, the Reserve Bank of Australia (RBA) may be forced to lift interest rates.
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Economics and markets
The Federal Reserve’s latest projections reveal a surprisingly moderate outlook for inflation and interest rates.
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Economics and markets
January 30, 2026
15
December
2025
2025-12-15
min read
Dec 15, 2025
Investment Watch: Summer 2026 Outlook
Andrew Tang (AR: 001007335)
Andrew Tang (AR: 001007335)
Equity Strategist
Investment Watch is a quarterly publication delivering insights into equity strategy and economic trends. The Summer 2026 edition explores global and Australian growth outlooks, structural shifts in asset allocation, and highlights opportunities across AI, resources, property, and income strategies to help investors navigate volatility and prosper in the year ahead.
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Economics and markets
Asset Management
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