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Household wealth in September recorded its third largest quarterly decline since the Australian Bureau of Statistics began keeping records in 1989. And wealth is likely to keep falling in the coming quarters, as the lagged effects of interest rate hikes flow through.
Inflationary pressures are expected to ease over the next six months according to federal budget forecasts, while consumer-focused and housing stocks could benefit from government policies aimed at boosting consumer spending and the availability of affordable housing.
The Australian share market is tipped to fall by up to 9 per cent in 2022 but to rise 5 per cent to 8 per cent over 2023, according to new forecasts from CommSec. While share prices have fallen this year, Australian companies remain well cashed up and profits sit at record highs, which will help to drive gains next year