Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market held up another positive day despite weak commodity prices and end of week profit taking. Market is up 5% in four days with yield and currency stocks predominantly leading the fight back. The “Once Were Warriors” Big Caps (i.e. BHP, STO, TLS and WOW) were mainly flat apart from the beaten up STO getting hit again. US Fed expectations of rate rise have moved from “will they raise” to “by how much and how long will it take to normalise”. The exposure to new economy, global business models and the premium growth and yield to value offered by MITCH (Media, Information, Telco, Consumer and Health) sectors are in the forefront of bargain hunters in the rebound …. even more attention needs to be paid to the Small Cap MITCH stocks. Superman Draghi is on show tonight and he will deliver another great talkfest without doing much. It looks like we are going to have that Christmas rally after all. (VIEW LINK)