AMP Capital head of investment strategy and chief economist Shane Oliver said equity markets have consistently seen a mid-year decline in the past four years, which will likely be the case again this year.
Mr Oliver said any pull back will be minor, however, with the share markets experiencing a gradual correction all year.
“Share market fundamentals remain favourable with reasonable valuations, global earnings improving on the back of rising economic growth and monetary conditions set to remain easy for some time,” said Mr Oliver.
“Any dip should be seen as a buying opportunity,” he said.
Mr Oliver said despite mining investment falling a further 8.7 per cent in the March quarter, Australian economic data is generally quite good.
He said the latest capital spending plans will likely lead to a “less negative outlook for 2014/2015 than previously foreshadowed, with mining investment set to fall more slowly and investment in other industries looking like it will see a solid rise”.
Mr Oliver said it is critical, however, that the damage to confidence from the Budget remains temporary.
