Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market delivered a slight negative day with no real global sentiment and the economy confused with the fiscal policy. RBA wants to imply that they are at the bottom of the rate cut cycle, but will go further if needed. The budget is the classic fairy tale. Things are tough, then everything recovers and we all walk down the beach with David Hasslehoff. There consensus view is that at best the assumptions in the budget are overly optimistic and at worse completely out of synch with reality. It will be naïve of Australia to assume that we have passed the worst. Market has been trading sideways over the past week within a 100 point trading band. We are beginning to see value in banks on a yield weighted basis, but the risk remains in bond yields rising and property bubble. We also see value in health care and telecommunication sectors. Patience is a virtue…start accumulating bit by bit!!! Be nimble!!! (VIEW LINK)