Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market delivered fifth negative day in a row, albeit small negative, despite very positive global lead. RBA and the federal government are working as an efficient tag team in confusing the market and killing confidence. We had a brokers claiming that rate rise in Australia won’t happen till 2018. The basic facts are that if we trundle along the current path, we should expect our currency will fall substantially in 2016 and drive up inflation and force RBA to put up rates. Then it will be too late and the asset bubbles will take its full toll on the economy and drive us to recession. It is naïve of us to assume that US rate rise later this year will not have flow on effect. Interest rates in Australia will go up by 2017 and we either make the right policy settings to be ready or the economy will have a “recession we had to have” moment. (VIEW LINK) NEXT EDITION ON THURSDAY 14th...ROAD TRIP TO MELB