Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Deep Data Analytics

Aussie market started very positive before giving it all up as market took profit before US Fed comments later tonight. RBA held its ground as we expected and flagged that banks are doing their dirty work on the property market. They can cut after the property bubble is deflated and the economy starts to deteriorate. The real rate cut cycle is over for property loans. We maintain our view from May 2014 that domestic housing bubble will burst in 2015H2/2016H1 period. The market will wait and see what happens tonight and then react. The most probable scenario is that US Fed talks up rate rise option while flagging that normalisation of rates will take 3-4 years. Retail data was as expected and provided some relief for retail sector, but the future looks bleak with GST rise almost certain. Small Cap continues to outperform Big Caps on month to date and year to date basis. If you want growth and yield, it is time to look past the usual candidates and go up the risk ladder to Small Caps. (VIEW LINK)

Mathan Somasundaram
Founder & CEO
Deep Data Analytics

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...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment