Equity Engineer - July 2014 | Time to be more Resource-full and Staple | We maintain our call from May 2013 that the market will experience a two year bull...

Equity Engineer - July 2014 | Time to be more Resource-full and Staple | 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 growth struggles. We turned positive in the short term on June 27th with new financial year starting; China data showing positive trends, bad news priced in and Big Miners delivering better yield than bonds. We maintain our negative view on local consumer discretionary stocks with continued budget related uncertainties. We suggest trimming the Bank holdings and increase holdings in BHP, RIO, WES and WOW. We also continue to favour TMT (Tech, Media and Telco) sectors with structural and cyclical upside in the next 12 months. (VIEW LINK)