Australia’s investment markets have performed well in the last 12 months, but this does leave them exposed to further shocks, however

 
Despite the gloomy economic outlook, Australia’s investment markets have performed relatively well over the past 12 months.

The S&P/ASX 200 Index is up 9.5 percent over that time, only slightly behind the Dow Jones Industrial Average’s gains of 10.9 percent over the same period, by comparison

“They’ve literally climbed a wall of worry; worry about recession, inflation, interest rates, [the war in] Ukraine and so on,” said Shane Oliver, chief economist at AMP, “but having gone up, it leaves them a little bit vulnerable to any bad news that may come along.”

“So my concern is we are at risk of a pull back in the short term as those recession risks remain very high,” he added.

Oliver also said that there is good news on the horizon as inflation does begin to cool in some key areas, adding that this could mean the RBA could be cutting interest rates by up to four times throughout next year.