In May, in a note called The Lucky Country, I argued that due to Australia’s far better control of coronavirus relative to many comparable countries, a stronger economic policy support response to shutdowns, and exposure to China which was well into economic recovery Australia was likely to come through this period of global misery relatively well compared to many other countries – and this may ultimately support Australian shares and other assets relative to other comparable countries’ assets. In the interim, the coronavirus resurgence in Victoria got in the way and we are still not out of the woods as periodic problems in NSW and a cluster in South Australia highlight.
But the basic points remain valid and I continue to thank god I live in The Lucky Country. This note provides an update and looks at five reasons why the Australian economy is well placed for a solid recovery in 2021 and why Australian shares are likely to be relative outperformers versus global shares…