Equity Financial Engineer | Market optimism may fall into Jackson Hole

Mathan Somasundaram

Low growth and low interest rates remain the key risks for financial stocks as global economies move from one disaster to another. The growth and yield to value outlook continues to favour banks above diversified financials, insurance and property trusts. The currency is likely to weaken as market optimism of a US interest rate cycle improves through the week towards the Jackson Hole update. The pullback in the currency should drive profit taking from global investors as they look to reduce exposure to the Australian market. This expected selling pressure should offer another buying opportunity into the financial sector. Preferred picks... (VIEW LINK)


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