The RIU Explorer's Conference floor plan in Freemantle.
Source: The Market Online
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

Five years on from the COVID-19 pandemic and its impact on world markets, things are getting steady again – with inflation coming back to target in many countries and reasonable growth being observed.

Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.

However, headwinds remain: Particularly uncertainties brought on by a new Donald Trump Presidency in the United States and tensions in Europe and other regions.

That was the message from Tony Brennan, chief investment strategist with Canaccord Genuity, at the RIU Explorer’s Conference in Fremantle on Tuesday.

Addressing a packed audience at the opening session, where this HotCopper writer was in attendance, Mr Brennan said things were “getting back on track for the global outlook,” but warned investors needed to watch future uncertainties.

Expanding on the first theme, Mr Brennan said we were “getting to the end of the pandemic, and back to a sustainable economy.”

He continued: “Growth is better than normal in conditions of high inflation, and it should be back to target in 12 to 18 months.”

Notably, there had been a trend continuing since the beginning of COVID-19 where services played a crucial role in offsetting subdued manufacturing data, which had been hit by higher rates and energy prices after Russia’s invasion of Ukraine.

But barring threats from a potential trade war, Mr Brennan suggested this sector would also move to a more optimistic track in the future.

In terms of global growth in 2025, he declared, “We’re on a path that allows for steady expansion, not quick rebound.”

There are some issues to watch though – beginning with large budget deficits among many national economies. Chief among them is the U.S.

“It has one of the biggest deficits outside a (period of) war,” he said. Trump’s plan to introduce tax and spending cuts could blow this out of the water though.

“You get to a point where the debt is unsustainable: This is the uncharted territory we have to watch,” Mr Brennan said, before adding that other Trump policies – including deportations and trade wars – could also add to U.S. inflation.

But given the greater importance of underlying global fundamentals, Mr Brennan said in the opening address, the best policy was to “wait and see.”

Join the discussion: See what’s trending right now on Australia’s largest stock forum and be part of the conversations that move the markets.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.

More From The Market Online
Uranium ore in a mine

AR3 hits shallow, calcrete-hosted uranium at Overland, across 1km zone

Australian Rare Earths Ltd has conducted drilling at its Overland project in South Australia which has…
The Market Online Video

ASX Market Open: Wall Street returns to sell-off trend ahead of Fed policy decision | March 19, 2025

The Aussie market is expected to open lower today, echoing falls across the three Wall Street…
Gold silver and copper

Great Western predicts large VHMS system after one hole program at Oval

Great Western Exploration Ltd has drilled one hole into its Oval target in Western Australia, yielding…
The Market Online Video

ASX Market Close: Index pares gains, Gold hits new record | March 18, 2025

The ASX200 pared early gains to close up by a sliver of less than a tenth of a percent at 7860 points.