It is no longer certain that there will be a recovery in the share market in the second half of this year, according to David Hudson, the chairman of the asset allocation committee at BlackRock Investment Management.
Speaking at a BlackRock Investment Management annual luncheon seminar for advisers, Hudson said investors were less optimistic about a recovery in the share market this year. The Australian economy could get back into better shape, but China would be pivotal to achieving that, he said.
“China must re-spark its economy,” Hudson said.
Hudson also said he expected Asian equities to outperform the developed share markets this year. Asia already went through its credit crisis and did not have exposure to the toxic assets that the US and European markets are dealing with.
Listed growth assets would also bottom half way through the year while resources would also underperform, Hudson said. The Australian current account deficit would also matter to the currency markets when there is no capital, he added.
Hudson said he also expects the US to outperform European equities due to the complexities of the European Union causing a lag in responses to the share market.
