Aussie market started negative before substantial buying support for the banks came out of the left field and drove the market higher even before RBA came out with a rate cut. It was almost like some big investors knew there was a rate cut coming or were willing to take a massive bet on the banks after two shocking results. The question needs to be asked why ANZ moved from -2% to +3% before the RBA rate decision. Budget tonight will get a lot of airplay for scratching everything and not solving anything. The budget is there to get the incumbent government re-elected with a least amount of damage. It will touch everything, promise to save the world and deliver no change to drive growth. 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. May has historically been a negative month. (VIEW LINK)
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