Macquarie’s Lakos Expects a Better Picture for Markets in 2H

The video discusses the start of earnings season and its impact on market conditions, focusing on company profitability and external influences like US dollar stability and Chinese fiscal policy. It reviews the performance of Australian and global markets, noting incremental growth and record highs in Asian markets. The discussion highlights challenges in finding investment opportunities due to high valuations and explores economic indicators like yield curves and Federal Reserve policies. The strategy involves adjusting market positions while considering the extended economic cycle and potential end of US expansion.

What factors are contributing to the modest improvement in data during the earnings season?

• Decrease in Chinese fiscal policies

• Volatile commodity prices

• Stable U.S. dollar and commodity prices

• Increase in federal rates

How did the Australian market perform despite the disappointing earnings season?

• It performed well through the last quarter

• It showed a slight improvement

• It declined significantly

• It remained stagnant

What is the potential outcome for equity market performance if the current trend continues?

• A slight increase in market performance

• Stagnation in market growth

• A record year for equity market performance

• A decline in market performance

Where does the focus tend to be for growth outside of Australia?

• South American markets

• Middle Eastern markets

• Emerging markets in Asia

• European markets

What is the current stance of the U.S. Federal Reserve regarding interest rates?

• Increasing rates

• Keeping rates on hold

• Eliminating rates

• Decreasing rates