Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market continued the flip-flop daily performance since last Wednesday by delivering a positive day despite negative US sentiment, falling commodity prices, RBA rate cut decision next trading day and institutional investors taking risk off before school holidays and four day weekend. Yesterday I sent a few clients an April Fools email saying Iron Ore has hit US$37.50, but the reality of it hitting below US$50 overnight shows that a price below US$40 is not as farfetched as previously expected. Turnover was just above $5.0b. US market continues to hover around the technical support level with fear and greed index remaining well into the fear zone. We felt that Feb cut was a wasted cut and it delivered no consumer recovery or currency deflation while making the asset bubbles worse. Any rate cut in April will further inflate the asset bubble and deliver no improvement in consumer sentiment while delivering marginal currency effect. As a very wise old man once told me “life is all about cycles, you evolve with the cycle or the cycle runs over you”.
Over 25 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...