Mathan Somasundaram

Aussie market bounced as on the back of resource sector due to a slight recovery in Oil and AUDUSD. Since the US Fed started talking rate hike potential, USD has been going up while commodities and AUD has been going down. US Fed continues to deliver a lot of hawkishness, but we have all seen this before. There is a lot of data to come out in the next 8 weeks before US Fed meeting in July. The move in June is very unlikely as the Brexit vote is a week after the US Fed meeting. If UK votes to leave EU, rate hike in July is not happening either. Time to keep adding to your exposure in Yield and Gold while taking profit in Resource stocks. Rising USD will be negative for commodity prices and currencies. As the market pulls back slightly, buy into the market while everyone else is scared!!! We continue to favour large to mid cap financials for yield and small to mid cap industrials for growth. (VIEW LINK)


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