Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market started positive and then ran out of puff as the valuations struggle to support the growth outlook with the macro headwinds. We are 2 weeks away from the end of the month and the end of the quarter. Fund managers around the world are trying to assess the risk after the recent market recovery. Logic suggests that the fund managers will move to lock in the performance and then come back in the new quarter to reassess the macro conditions. Hedgies by default want volatility and the volatility index is showing that we are at the bottom of the recent volatility cycle. Get ready for profit taking!!! The volatility indices in US and Australia are showing heightened risk of profit taking in the short term. Time to be patient and pick the time to add more exposure…maintain long Yield and Gold, short Iron Ore and Oil!!!! (VIEW LINK)