Sunset Strip 25th August 2020
The local market opened solidly higher on global investors buying for currency trade then profit taking cycle dragged the market lower through the day till a mini recovery in the last hour as global investors returned to chase currency and finish in the green.
The local market was mainly flat when you remove the banks. Global investors were buying banks and tech in line with US trend overnight. Reporting season keeps delivering volatility but the main market driver is global macro trades. RBA keeps talking about more QE and more fiscal help but it has already thrown the kitchen sink and failed. RBA is now a passenger in the global currency trade and watch AUD go higher as USD implodes on money printing. US election cycle means unproven vaccines, government gridlock and geopolitical risks are elevated. Risk of China alienating Australia to make a point is relatively high. The best three performing sectors were Tech, Banks and Property while the worst three were Health Care, Staples and Materials.
Remain nimble, contrarian and cautiously pragmatic with elevated global macro risks!!!
A PDF of the Sunset Strip Afternoon Report is below
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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...