A weight of cash on the sidelines is limiting the downside on any pullbacks and interest rates are likely to head lower

A weight of cash on the sidelines is limiting the downside on any pullbacks and interest rates are likely to head lower. Steve Johnson, CIO at Forager Funds, says the recent pullback in the market was healthy and many stocks are now at more sensible levels compared to earlier in the year. He does, however, believe that in the absence of some abnormal event any pullbacks are likely to be relatively shallow. You get real dislocations when there is forced selling, when people are getting redemptions or funds are being shut down or investors are leaving in droves. Right now Johnson says there is just too much money sitting on the sidelines waiting to buy into any weakness. On interest rates he is more cautious and believes that unemployment could force the RBA's hand to move interest rates lower. You can access the full discussion on the following link: