Equity Engineer - Jun 2014 | Central banks pushing the markets higher | We turned positive in the short term on May 22nd with China data beating expectations,...

Equity Engineer - Jun 2014 | Central banks pushing the markets higher | We turned positive in the short term on May 22nd with China data beating expectations, while US data continues to point towards sustainable recovery. We maintain our preference to yield thematic from Jan 21st with Budget uncertainties driving down local cyclicals, subdued global growth outlook and Central banks maintaining low rates for longer. Similar to 1996 budget, 2014 budget does not deal with structural problems but exasperates the wealth inequality and transfers debt from government to public. The short term budget fixes do not deliver any structural move away from the old economy, while the rest of the world moves towards a new technology based economy. (VIEW LINK)