Investors are attracted to Australia’s close ties to emerging Asia’s rapid growth and demand for commodities.
“Australia’s secular, or long-term story is what we at Pimco feel is most attractive, including that country’s status as a large commodity exporter and key trading partner with Asia and emerging-market nations,” Mead said. “We expect the U.S. economy to move sideways with low growth for some time, whereas Australia is poised to see further growth in coming years.”
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Max Chen contributed to this article.