Quant Strategy Portfolio | February update - Managing RBA and CNY effects | Strategy outlook: We maintain our long term positive view that the market will...

Mathan Somasundaram

Deep Data Analytics

Quant Strategy Portfolio | February update - Managing RBA and CNY effects | Strategy outlook: We maintain our long term positive view that the market will reach 6500 in the next 12-18 months while short term profit taking risks remain with post reporting season lack of buying support, post Chinese New Year (i.e. CNY) commodity price risk and RBA rate cut expectations already in the price. Historically strong February market performance leads to flat or negative March performance while commodity prices have been soft after Chinese New Year since 2011. The market is already pricing in RBA cutting rates again in March, while we expect them to not waste another rate cut with substantial macro head winds still hanging around. We expect domestic consumer confidence to remain low, RBA to cut rates around April/May and currency to trend down to mid to low 70s. The yield differential and currency stabilising in the mid to low 70s will bring Australian high yielding equities back in favour of global investors. (VIEW LINK)


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...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.