Equity Engineer - February 2015 | Aussie market to hit 6500 with interest rates to go below 2% | We maintain a bullish long term view on the Australian equity...

Equity Engineer - February 2015 | Aussie market to hit 6500 with interest rates to go below 2% | We maintain a bullish long term view on the Australian equity market from May 2013, while pushing back our timeline to 6500 from 2015 to 2016 after earlier than expected decline in commodities, currency, consumer sentiment and government policies that did not favour growth. The RBA move has made equities as the preferred risk/return option for investors wanting more than 3% return in a rising cost environment. We expect global investors to come back in substantial amounts when the currency gets down to low 70s. The recent global interest in Aussie equities is mainly driven by short covering after RBA's sudden move to get asset values higher. We see short term profit taking risk in the market after hitting post GFC high valuation level (i.e.5800) with reporting season risks and potential end of global investor short covering. (VIEW LINK)