In our last quarterly outlook, Tim Toohey (Head of Macro and Strategy) detailed why he remained upbeat that the exceptional rally in Q4 would be sustained in 1Q, flagging a 2% rally for global equities and that Australian equities would go along for the ride. In the end, it seems we were not quite optimistic enough!.

So what’s driving current enthusiasm for risk assets, and can it be sustained? In his preview of the June 2024 quarter, Tim looks at the key inflation indicator, explains why underlying real income remains the key, and provides his outlook for the period ahead.