The Rising Cost of Growth
Share markets had a choppy end to the September quarter, as rising interest rates, higher energy prices and global tensions weighed on sentiment.
Markets are caught in a tug of war. Company earnings remain strong, but the cost of funding future growth is rising. Even so, history offers some encouragement as we close out 2026. Over the past 70 years, global shares have risen in the final quarter nearly 80% of the time, and US midterm years have typically finished strongly
In our latest Quarterly Investment Report, we explore what’s driving markets, where risks are building and what it means for portfolios heading into 2027.
In this edition, we cover:
- What’s powering global growth, and why Australia is falling behind.
- Why earnings, not optimism, have driven sharemarket returns this year.
- AI’s growing reliance on debt, and why lenders are becoming more selective.
- What the US midterm elections mean for investors, and why the result may matter less than you think
We hope you enjoy the read, and look forward to keeping you informed as we close out 2026.
Warm regards,
Mackay Private Wealth
General Advice Warning: Any comments in this communication do not consider your objectives, financial situation or needs. Before acting on any general advice, consider whether it is appropriate for you.