Our basis for remaining short Aussie stocks and commodities Australia The Australian GDP data showed weakness earlier this week, and with inflation falling...

Our basis for remaining short Aussie stocks and commodities Australia The Australian GDP data showed weakness earlier this week, and with inflation falling alongside Iron Ore and the commodity complex in general in AUD terms, it is painting a gloomy picture recently. Our models are showing that the trend will continue in to the new year, below are our leading indicators for Q1 2015. Whilst the weaker dollar we have seen recently is good for Australia's exports, we fear the domestic economy is in trouble as domestic earnings dwindle and property prices may come under pressure. The short Australian stocks trade is only a small piece of our portfolio at 3% currently, but we also continue to hold 7% of the portfolio short commodities which we estimate to be a similarly correlated trade moving forward. Read more... (VIEW LINK)