Equity Engineer - September 2014 | Buy on the cannons - buy BHP and RIO | We turned negative in the short term on August 20th with stretched valuation, escrow...

Equity Engineer - September 2014 | Buy on the cannons - buy BHP and RIO | We turned negative in the short term on August 20th with stretched valuation, escrow shares coming into the market, stocks going ex-dividend, geopolitical risks, government budget and related inquiries. Since then the market has also been hit with senate deals, political corruptions, falling Iron Ore, broker downgrades and house price bubble worries. We expect to see Iron Ore settle around $90, dividends to come back in to the market, fund managers cash holding to chase performance, brokers to upgrade on currency decline, interest rates to remain low, China to stabilize, Euro to QE, US recovery to be maintained and potential Japan QE. We suggest increasing BHP and RIO holdings to get higher growth exposure in your portfolio. (VIEW LINK)