The S&P/ASX 200 (ASX: XJO) finished the month on a sour note, falling 0.4% on Friday to take the weekly fall to 0.5%.
Here are my three key investor takeaways from the week.
Pandemic will hit
There is little doubt anyone missed the heartbreaking footage of the events occurring in India, yet it doesn’t end there.
COVID-19 cases are now spiking on nearly every continent, increasing the threat of mutations and making it clear that the virus will not be leaving us anytime soon.
Investors must be vigilant in this environment – never has the divergence between the performance of companies, within and across sectors, been so wide and uncertain.
Immigration slowing the recovery
Australia’s immigration-driven economy is clearly becoming a headwind amid the pandemic, with anyone visiting a café, restaurant or bar in recent weeks no doubt hearing about the lack of skilled staff available for many smaller businesses across multiple industries.
It is clear that this will become a drag on the economic recovery and eventually, the property market should our borders remain squarely closed as the pandemic rages on.
Inflation is already here
Anyone waiting for inflation to return needs to wait no more. It’s back, whether it is showing up on headline figures or not.
Among the most common statements in the latest round of quarterly updates are comments like ‘input costs are rising’, ‘supply shortages are impacting sales’ and hopes that these costs will be passed onto consumers.
It’s clear that inflation has now spread beyond asset prices, the question is whether it sustains or is just transitory.
Looking ahead, the ASX 200 is set to edge lower when the market opens on Monday. For all the latest, check out Rask Media’s ASX morning report.
