Australia’s Hotter Economy Largely Priced In

Bob Elliott · Nonconsensus · February 25, 2026 at 11:22 · ⏱ 3 min read  | Read on Substack ↗
Summary
The author reflects on a successful nonconsensus call from the previous summer, where they argued that Australian markets were underpricing the country's coming economic strength. Since then, short-term interest rate, bond, and currency markets have moved to price in this economic divergence.
  • Last summer, the author made a nonconsensus call that the Australian economy would outperform expectations.
  • The thesis was based on the unique structure of the Australian economy.
  • Since that call, Australian STIR, bond, and currency markets have significantly appreciated, reflecting the economic strength.
  • The article suggests that this previously identified opportunity has now been largely priced in by the market.
Read time 3 min
Length 3,995 chars
Category finance
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