Market pulled back slightly as global sentiment remains weak after running ahead of the fundamentals. US Fed has set the path to end cheap debt while every other central bank is on hold indefinitely. The stronger the yields, the strong the USD, the more pressure on Emerging Markets to raise rates to keep capital….the lower the growth outlook for Emerging Markets and demand for commodities. China could throw in another curve ball by devaluating the Yuan further. Locally federal government continues to run away from reform and most likely to face another leadership challenge in 2017/18. State governments in NSW and VIC are facing the reality of weaker housing market, infrastructure cost blowouts and running out of assets to selloff. MYEFO update should be entertaining…fantasy assumption will really have to get ramped up to keep the illusion of budget surplus path intact. There are rumours that Italian banks are about to get bailed out with another swap deal…more blocks into the Ponzi scheme!!! For the full report… (VIEW LINK)