Listen to Dianne Colledge on SBS On the Money
Dianne Colledge, private client adviser at Morgans, joined Ricardo Gonçalves on SBS On the Money on Thursday 8 October 2026. She explained why the ASX is underperforming global markets, what to watch this AGM season, and why Morgans is focusing on ASX companies with offshore earnings. Listen to the full episode below.
Key takeaways
- The ASX is underperforming global markets. Sticky inflation, higher living costs, tax changes affecting property and rising government bond yields are weighing on confidence.
- Shares have to compete with cash. If the bank pays 5%, investors need a higher return from income and growth to justify the risk of investing.
- AGM season is about trading updates. Agricultural stocks and the banks are also reporting, with the banks under pressure from rising interest rates and property market changes.
- Morgans is focusing on offshore earners. ASX companies that benefit from US growth, plus direct international exposure through shares or listed ETFs, are where Dianne sees opportunity.
The Australian share market fell 0.8% on Thursday 8 October 2026 after Wall Street came off record highs overnight, leaving the S&P/ASX 200 down about 1.3% for the month so far. For many investors, it raises a bigger question: why is the ASX underperforming global markets?
In this article, Morgans private client adviser Dianne Colledge explains what is driving investor confidence, what she is watching this AGM season, and what she is telling her clients right now.
Why is the ASX underperforming global markets?
The ASX is underperforming global markets because weak consumer confidence is feeding into investor confidence. "Consumer confidence has been the backdrop to investor confidence," Dianne said, and several local pressures are weighing on both.
What is driving weaker investor confidence?
What moved the ASX on 8 October 2026?
The ASX ended 0.8% lower after US shares fell from record highs overnight. Materials and industrials fell the most, with BHP down 2%, while the consumer staples and energy sectors rose.
Can shares compete with 5% in the bank?
They need to. "We're competing with having money in the bank," Dianne said. If the bank is going to give you 5%, shares need to generate a higher return, through both income and growth, to compete with that and to make up for the risk of investing.
That higher bar is one reason Dianne is looking beyond the local economy for growth, which is covered in more detail below.
What should investors watch this AGM season?
Annual general meeting (AGM) season is now underway, and Dianne's focus is on companies that provide a trading update at their AGM. Those updates will dictate how the companies perform after the information is released to the market.
More often than not, Dianne also looks at companies that are topical in the market at the time.
A mini reporting season for agricultural stocks and banks
This time of year also brings what Dianne called a mini reporting season:
- Agricultural stocks are releasing their six-month results, which fall outside the normal reporting cycle of most ASX companies.
- The banks are also coming to market with their results.
Why are the banks under pressure?
The banks are under quite a bit of pressure, according to Dianne. Rising interest rates and changes in the property market are affecting their ability to lend and to generate profits from their lending business.
Where does Morgans see opportunities for investors?
Morgans is focusing on ASX-listed companies with offshore earnings. "Our economy is not giving us the growth that is required to generate really solid returns out of the ASX-listed companies," Dianne said.
ASX companies with offshore earnings
Dianne is looking at companies thatleverage off the US economy, which is delivering a higher level of growth thanAustralia's. Stocks she named that benefit from growth in offshore economiesinclude:
- ResMed (ASX: RMD)
- QBE Insurance Group (ASX: QBE)
- Light & Wonder (ASX: LNW)
- BlueScope Steel (ASX: BSL)
- James Hardie (ASX: JHX)
Diversifying into international markets
benefit portfolios in the currentenvironment, and there are two ways to get it:
- Direct equity investment ininternational shares.
- Listed ETFs that give access tointernational markets.
The bottom line on the ASX's underperformance
The ASX is underperforming global markets as sticky inflation, higher living costs, property tax changes and rising bond yields weigh on confidence, while 5% in the bank sets a high bar for shares. This AGM season, Dianne is watching for trading updates and results from agricultural stocks and the banks.
With the local economy not delivering the growth needed for really solid returns, Morgans is focusing on ASX companies with offshore earnings and on direct exposure to international markets through shares or listed ETFs.
If you would like to talk through how these market moves affect your portfolio, get in touch with Dianne Colledge.
Frequently asked questions
Why is the ASX underperforming global markets?
According to Dianne Colledge, the ASX hasunderperformed because of sticky inflation, higher living costs, tax changesaffecting the property market and rising government bond yields. Weak consumerconfidence has been the backdrop to weaker investor confidence.
Why do bank interest rates matter for share investors?
Shares compete with money in the bank. If the bank pays 5%, investors need a higher return from shares, through both income and growth, to compete with that and to make up for the risk of investing.
What should investors look for during AGM season?
Dianne focuses on companies that provide a trading update at their AGM, as that information will dictate how they perform after its release. Agricultural stocks and the banks are also reporting their results at this time of year.
Which ASX stocks have offshore earnings?
ASX companies Dianne named that benefit from growth in offshore economies, particularly the US, include ResMed, QBE, Light & Wonder, BlueScope Steel and James Hardie. Investors can also get direct international exposure through international shares or listed ETFs.
