Touchstone podcast: The state of consumer spending

Touchstone Asset Management

August 2023

"In Australia, consumer spending, historically, has been about 50% of GDP. This year it's been closer to 80% of GDP growth. There seems to be a view that, well, the RBA's ... more or less done what it's gonna do. I think what the market's missing, though, is there's a huge lag from when the RBA increases rates to when households actually have to pay the higher interest rates."

• 1:03 - Touchstone's philosophy and investment process
• 2:37 - Ron's observations from his recent Melbourne trip
• 4:23 - What secular stagnation is, and why it matters
• 6:16 - The real reason consumer spending is going down
• 8:31 - The impact of earnings being too high for consumer companies
• 11:33 - What Touchstone expects from reporting season

Funds operated by this manager:

Touchstone Index Unaware Fund

The content contained in this audio represents the opinions of the speakers. The speakers may hold either long or short positions in securities of various companies discussed in the audio. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely as an avenue for the speakers to express their personal views on investing and for the entertainment of the listener.