Ignoring risk has never been a good strategy!

Mathan Somasundaram

Deep Data Analytics

Local market started positive on the US lead before ASX crapped itself and trading was put on halt. We saw some slight trading through Chi X but nothing much today. Most of the news flow driven trades and global investors pushed the market high on the open and then market lockdown and that’s all the action for the day. We will play catch up tomorrow…assuming things are back online!!!

Europe real time data shows economic activity rolling over with lockdown restriction and ECB will have to print more to cover the downgrades coming. US post-election transition is a mess while covid19 spreading like wildfire. Number of the republican governors are being forced to start gradually moving towards lockdown restrictions as daily cases and hospitalizations hit all time high!!!

US market had a solid positive Friday on election and vaccine optimism. Trump administration lost cases in several states while Biden camp had more states confirmed. Legal challenges unlikely to flip results but buy time for more donations. Vaccine hope is being used by brokers pushing normality in 6 months...sadly we are not in Kansas anymore...new post pandemic norm is here and economies have to evolve!!! The switch from growth to value is clear...Russell is the best performer again by a margin over NASDAQ. Bonds barely moved while US$ and Oil fell. Gold lead the metals higher. More talk of restrictions and quarantine between states in the US as daily cases go past 150k. The rotation from high growth to cyclical as Energy and Industrials lead the run today. Election and Vaccine optimism in the price while bond yields are flagging the rotation has started.

Remain nimble, contrarian and cautiously pragmatic with elevated global macro risks!!! Buckle up...it’s going to get bumpy!!!

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Mathan Somasundaram
Founder & CEO
Deep Data Analytics

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...

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