Each year one of my favourite Australian economists (yep, I am that nerdy) Dr Shane Oliver puts out a great report reviewing the economy and sharemarket over the previous year, and gives his outlook for the coming year.

Here is a sneak preview of his "insights":

  • 2014 has been a reasonable but somewhat messy year for investors as the global economy remained in a cyclical "sweet spot" despite various threats, but Australian shares underperformed.
  • 2015 is likely to see okay but uneven global growth, low inflation and easy monetary conditions.  While the US is likely to start gradually raising rates, other countries including Australia are likely to ease monetary policy.
  • Against this backdrop the bull market in shares and most growth assets is likely to continue.  However, with shares dependent on rising earnings, volatility is likely to be a bit higher and returns okay but constrained.
  • The main things to keep an eye on are: when/if the Fed starts to raise rates, Europe, the Chinese property slump, and growth outside of mining in Australia.

Click here for a FULL copy of his most recent report, which is as always, full of great information and a fairly entertaining read given his profession tee hee.

And if you'd like to hear more of what I have to say on the matter, click here for a recording of my most recent "You & Your Money" radio segment on 98.1FM Radio Eastern.