Equity Market Engineer | Central banks are becoming overexposed reality stars

Global markets are looking at US Presidential election and Italian referendum as the next key risk catalysts. Central banks are running out of ammunition and are being forced into even more complex and creative ways to drive asset bubbles. Central banks are becoming the new global reality stars for the markets. As with any reality star, over exposure reduces effectiveness and the sustainability of the marketing pitch. We maintain a bullish long term view on the Australian equity market with the 12 month index target level of 5,850. We maintain our positive long term view on the yield thematic, while small cap industrials offer the best growth and yield to value mix. (VIEW LINK)