Australian Equities Market Update - May 2021

10 June 2021

The sharp spike in input prices in recent months has raised concerns it will feed into higher inflation, impacting negatively on valuation of growth stocks. However, these concerns have eased as evidence emerges that
supply chains are returning to normal. The critical issue in the inflation debate is the extent of spare capacity in the economy, particularly in the labour market.

We see the best opportunities in a number of structural growth and infrastructure stocks which have been left behind as the market focuses on near-term cyclical trends.


Northcape Capital

Northcape Capital
Expert Investment Partner