Summary: Prices for our export commodities look set to stay low for a long time, while our housing market is set to have a sizable vacancy rate that will depress returns and values in the short- to medium-term. Companies that face a way to boost revenues and control costs in a lower growth economy will thrive. The banks will continue to grow but at a much lesser pace, while the retail industry is in the front line in the decline of discretionary spending.
Key take out: As we face a lower growth economy, stock picking, rather than index investing, is going to be very important. We will need to look for different stocks in 2015.
Key beneficiaries: General Investors. Category: Strategy.