Wage woes a boon for investors, says Tevfik

Original article by David Rogers
The Australian – Page: 27 : 23-May-18

The S&P/ASX 200 has fallen by an average of 4.3 per cent during May and June over the last decade, and the current trend suggests that it will be trading at around 5,724.8 points by the end of June. However, Hasan Tevfik of Credit Suisse still expects it to reach 6,500 points by the end of 2018. He says corporate profit margins – and in turn share prices – should benefit from expectations that wages growth will remain subdued. Lack of growth in wages will also affect the timing of any rise in official interest rates, which Credit Suisse does not expect until about mid-2019.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CREDIT SUISSE (AUSTRALIA) LIMITED, BLUESCOPE STEEL LIMITED – ASX BSL, AUTOMOTIVE HOLDINGS GROUP LIMITED – ASX AHG, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, VICINITY CENTRES – ASX VCX

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