Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market maintained the global market optimism and delivered a solid up day. The market is getting positive on US Fed and Banking sector. Market expectations are now 30% for a December move by US Fed and the rest pointing even further out while domestic banks are seeing support since WBC moved on rates. China delivers their growth plan next week and market expects stimulus to support commodity prices and Resource sector. As we wrote in the “Morning Strip”, it is time to start accumulating preferred stocks for the Christmas rally with the main thematic remaining with Yield. We suggest starting taking profit in gold equities in the short term. All the non-mining sectors were positive today. We expect the overall positive trend to continue with the financial sectors beginning to see support. Property bubble worries will hit discretionary retailers and residential property stocks. Institutional investors will be forced to move the investment from those sectors to safer yield providing stocks like WOW and WES to keep the consumer exposure. (VIEW LINK)
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