5 Stock Market Forecasts Next 6 Months

This article covers 5 stock market predictions next 6 months. To read the detailed description of the market outlook, go directly to 10 Stock Market Forecasts Next 6 Months.

5. Australian Stocks will Outperform

Australian stocks also suffered the same fate in 20222, coming under immense pressure as the Reserve Bank of Australia embarked on an aggressive monetary policy tightening. The overall equity market was down by about 5%. However, there was a change of fortunes in the first half of the year with tech and AI stocks spearheading recovery in the overall market.

Nevertheless, investors remain extremely cautious in the year’s second half amid the lag effect of rate hikes in 2022. Inflation remains a serious concern as it has contributed to the RBA raising interest rates to above the 4% threshold resulting in more expensive borrowing conditions for businesses and consumers.

Heading into yearend, there could be more pressure on Australian equities on more interest rate hikes that could lead to slower economic growth and reduced corporate profits. According to Matthew Haupt of the WAM Leaders fund, the short-term outlook does not look good for Australian equities.

Nevertheless, Australian stocks are expected to outperform starting in 2024 on the prospect of the RBA instituting rate cuts.

“We do expect some economic weakness in the very short term over the back half of this year and some potential tightening in federal rates. Ultimate that is negative short term for equities. Ultimately 2024 is looking very good the environment for equities,” said Mr. Haupt in an interview with CNBC.