Isaac Poole from Oreana says we don’t expect the Fed to announce tapering yet. Growth has been challenged recently, and the Fed is likely to want to wait to see what happens in the labour market over the next couple of months. And the delta variant has also brought some time to review the impact of any decision. Isaac indicates that he thinks tapering will likely be announced later this year or early next. A rate hike is more likely to come in 2023 he says. Isaac goes on to discuss investment opportunities given the China backdrop. The debt issue is a challenging piece of analysis he says. China’s authorities have been targeting a reduction in easy lending, misallocation of capital, and low quality growth for some time. He believes the tail risk of this is a messy credit deleveraging. Find out were Isaac is allocating in the medium term. (Source: Ausbiz)
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