Sunset Strip - 16th September 2020

Mathan Somasundaram

Deep Data Analytics

Local market had a positive day with global investors dominating our market to get exposure to the rising AUDUSD and away from falling USD. All sectors were in the green with tech and telecom being the best while utilities and materials were the worst. AUDUSD started weak on NZ data before the fading USD started push it back up again. Gold remains in a positive mode with US Fed update tomorrow.

Global economy has bounced back on re-opening but parts of world are in different levels of restriction due to new waves and old waves. Chinese Yuan has hit 12 month high against USD on positive data while USD remains in pullback mode. US and China are starting to see inflation while both of them are exporting deflation to the world. Markets are waiting for US Fed to print more but it will it print more…probably won’t right now…expect outlook upgrade and ready to do more!!! Recent trend from BOJ to ECB has been to upgrade outlook and stay the current QE path. US Fed is likely to do the same in the last meeting before US election. Global markets are where they are purely due to central bank stimulus and has nothing to do with the strength or quality of the economy. If you remove the QE, normalize yields and shrink the balance sheet, US market will be 50-75% lower in the current economic cycle!!!

US market started positive overnight and then faded through the day. DOW started up over 200 and finished up 2!!! NASDAQ lead with +1.2% bounce while Russell and DOW were flat with S&P in the middle at +0.5%. No new thematics...more of same as before M&A and US Fed theme playing for the optimist. Not much of a move in bonds, currencies or commodities. Oil moved a bit higher on hurricane related supply risk but that won’t last. Property and Tech were the best sectors while Financials and Energy were the worst.

US has managed to deliver a middle east peace pact with very little detail and it is between countries that were not in conflict. But they are directly or indirectly fighting with other countries in the region. For signing up they get access to more weapons to make the middle east even more unstable than before. The timing of this alternative fact based peace pact coming out a month before US election cycle is classic media fodder. Don’t hold your breath for middle east to suddenly rejoice into wild parties after the peace pact as none of the parties that signed it trust each other or expect this to last after the election. Reality is stranger than fiction!!!

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

Live tonight on comedy channel....US Fed will deliver alternative facts!!!

Not already a Livewire member?

Sign up today to get free access to investment ideas and strategies from Australia’s leading investors.

........
Deep Data Analytics provides this financial advice as an honest and reasonable opinion held at a point in time about an investment’s risk profile and merit and the information is provided by the Deep Data Analytics in good faith. The views of the adviser(s) do not necessarily reflect the views of the AFS Licensee. Deep Data Analytics has no obligation to update the opinion unless Deep Data Analytics is currently contracted to provide such an updated opinion. Deep Data Analytics does not warrant the accuracy of any information it sources from others. All statements as to future matters are not guaranteed to be accurate and any statements as to past performance do not represent future performance. Assessment of risk can be subjective. Portfolios of equity investments need to be well diversified and the risk appropriate for the investor. Equity investments in listed or unlisted companies yet to achieve a profit or with an equity value less than $50 million should collectively be a small component of a balanced portfolio, with smaller individual investment sizes than otherwise. Investors are responsible for their own investment decisions, unless a contract stipulates otherwise. Deep Data Analytics does not stand behind the capital value or performance of any investment. Subject to any terms implied by law and which cannot be excluded, Deep Data Analytics shall not be liable for any errors, omissions, defects or misrepresentations in the information (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (whether direct or indirect) suffered by persons who use or rely on the information. If any law prohibits the exclusion of such liability, Deep Data Analytics limits its liability to the re-supply of the Information, provided that such limitation is permitted by law and is fair and reasonable. Copyright © Deep Data Analytics. All rights reserved. This material is proprietary to Deep Data Analytics and may not be disclosed to third parties. Any unauthorized use, duplication or disclosure of this document is prohibited. The content has been approved for distribution by Deep Data Analytics (ABN 67 159 532 213 AFS Representative No. 1282992) which is a corporate approved representative of BR Securities (ABN 92 168 734 530 and holder of AFSL No. 456663). Deep Data Analytics is the business name of ABN 67 159 532 213.

1 topic

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.