Aussie market continues to defy pessimist and delivered 9th straight positive day since the middle of December on relatively low turnover and positive commodities sentiment. The last time the market had more than 9 consecutive positive days was in February 2015 when the market had a big run up to making a new post-GFC high. As we have been saying for the past few weeks, despite the profit taking in the first half of December, Christmas rally was expected to start its third leg with US Fed move… and we have had 8% in 9 consecutive positive days!!! We remain positive on the equity markets due to the solid corporate balance sheets and cost out potential to maintain a substantial yield premium to bonds. The market needs just over 1.4% tomorrow to close positive for the year. Time will tell if we hit the mark, but when you include dividends, equity market returns for the past 12mth compares well with 10 year bond yield. Notable moves today were… (VIEW LINK)
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