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

Livewire Exclusive

Livewire Markets

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:


Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.