Aussie market flip-flopped between slight positive and slight negative before China growth data helped to push into solid positive territory. China GDP growth matched expectations and was right in the middle of the target band set by the government. If only everything worked so perfectly….like the local unemployment data improving for the election cycle. The China growth is in decline and will hit uncharted low levels in 2017 while demographic challenges, asset bubbles, high debt will keep things interesting for the leadership to navigate. The weekend will be all about Doha energy get together and US reporting season. US reporting season looks to be meeting negative expectations. After 8 years of cheap money, we are looking at 3 consecutive negative quarters in US corporate results. Time to be patient and pick the time to buy-in or add more exposure…maintain medium to long term view > long Yield and Gold, short Iron Ore and Oil!!! (VIEW LINK)
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