Equity Engineer - December 2014 | Santa gets past commodity collapses and budget bungles | Market Outlook: We maintain our call from May 2013 that the market...

Equity Engineer - December 2014 | Santa gets past commodity collapses and budget bungles | Market Outlook: We maintain our call from May 2013 that the market will experience a multi-year bull market based on a low growth global recovery and the global demand for yield. Equities will continue to benefit from major global economies maintaining low rates of interest for longer, as countries struggle with growth and unemployment. | Currency Outlook: We expect the AUDUSD to trend down to 82 cents in the short term and move towards the 78-82 band in the medium term with prolonged low commodity prices. | Interest Rates Outlook: We expect the RBA to work towards a 25-50 bps rate cut in mid-2015 to stimulate a stagnant low growth economy. If the market gets ahead of the rate change and we see AUDUSD below 80 cents before 2015Q2, then we will not get the rate cuts. Even if the rates are to increase (i.e. US); we expect that the rate of change will be a very slow and measured process. (VIEW LINK)