Equity Engineer - August 2014 | Path to recovery about to get bumpy - take profit short term | We maintain our call from May 2013 that the market will...

Equity Engineer - August 2014 | Path to recovery about to get bumpy - take profit short term | We maintain our call from May 2013 that the market will experience a two year bull market to 6500 based on a US and China led global recovery. Equities will continue to benefit from major global economies maintaining low rates of interest for longer as the countries struggle with growth and unemployment. We turned negative in the short term on August 4th with stretched valuation, geopolitical risks, government budget and related inquiries. Property prices are beginning to flatten with potential risk of oversupply in residential properties rising. We expect a pullback below 5% to provide enough value in the market to entice the investors back. (VIEW LINK)