Equity Market Engineer | Another day in fool’s paradise
Equities will continue to benefit from global demand for better than bond yield income streams from the rising older demographic.Australia will continue to attract recession fears as the country sleepwalks through a low growth global economic transition. Corporates are expected to protect their balance sheets, cut costs, buy-back shares, drive industry consolidation and maintain yield to deliver share price performance. We expect global investors to buy into Australian equity dividend yields as the currency pulls back to high 60’s. We continue to see limited upside from the federal budget while the RBA has delivered another wasted May rate cut. RBA will be forced to follow with another cut in Q3 as the economy slows further. RBA moving to cut rates before local federal budget tonight, US payroll data on Friday, US Fed June meeting, UK’s Brexit June vote and weakening Chinese economic data shows the real weakness in the local economy. The economic free kick from the May rate cut is likely to be short lived with substantial global macro risks in play. (VIEW LINK)
Over 25 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...