Impact of the election on clients' share investments
Almost a week after the nebulous election, we take this opportunity to reflect on the result in the context of our clients' Australian share (equity) investments.
In summary - the impact is not much.
Directly, the most notable is Primary Health Care. The Mediscare campaign is likely (even assuming a returned Coalition government) to see reduced pressure on GP bulk-billing, which is a positive for Primary.
It is also likely that the pressure on radiology and pathology rebates will be lessened or removed - also a positive for Primary.
Indirectly, interest rates pressure is more to the downside - certainly in the short term (because of the political uncertainty). This has a potential impact on the investment return that insurers such as Suncorp and QBE earn, but it is not expected to be material. Other companies benefit from lower rates (depending on their funding domicile, hedging etc).