Despite an avalanche in new IPOs and spin-offs thus far this calendar year, and with more to come in the months ahead, the Australian share market is likely to shrink in size this year. Yes, that's right. Australia is finally following in the footsteps of US equity markets where buybacks, acquisitions and de-listings have led to a shrinking equity base in three consecutive years 2011-2013. Demand-supply dynamics also work in financial markets, so -all else equal- a shrinking base should provide further support for local equities in the second half of 2014. My Weekly Insights this week: (VIEW LINK)