Local market outlook: The Australian equity market is expected to pullback as global and local sentiment fall in the traditional weak local winter season. Australia continues to ignore structural issues after going through 25 years of growth on the back of credit, population and mining boom. The lack of policy planning post boom cycles have delivered asset bubbles and cyclical low growth risks. We expect global investors to buy into Australian equity dividend yields as the currency pulls back to the high 60’s. Australian equities will continue to benefit from global demand for better than bond yield income streams from the rising older demographic. The RBA will be forced to follow with cuts in 2016Q3 and 2017Q2 as the economy slows further. Market view: We maintain a bullish long term view on the Australian equity market with the 12 month index target level of 5,850. We continue to see profit taking in June on macro risks and stretched valuations while longer term dynamics are supported by low growth and low interest rates. (VIEW LINK)
2017 - Now > Blue Ocean (AUS) > Market Portfolio Strategist 2012 - 2017> Baillieu Holst (AUS) > Head of Strategy, Quant and Data Analytics 2009 - 2012 > Bell Potter / Southern Cross (AUS) > Head of Quant and Data Analytics 2007 - 2009 > LIM...
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