Sunset Strip 27th August 2020

Mathan Somasundaram

Deep Data Analytics

Local market started positive on global investor buying for the currency trade before profit taking faded the positive performance through the day.

EU markets were boosted into positive overnight on Germany keeping stimulus going for longer while US market was boosted on the view that US Fed update tonight will deliver endless stimulus. US CDC watered down quarantine, tracking and testing standards as political pressure gets result like the US Fed. EU has already become an endless money printing ponzi scheme like Japan and tonight US will confirm that they have joined the asset/debt bubble frenzy. If money printing solved economic problems, why wouldn’t everyone do it? Maybe it doesn’t work and leaves a bigger mess!!! Money printing delays economic mess like recession but economy still deteriorates gradually and falls into a bigger mess when there is no reform to change the dynamics. US$ is likely to be the victim of US economic mess and that will create inflation for them and deflation for the rest of the world. Expect US Fed to talk about ignoring inflation undershooting and overshooting in the short term. If I was a betting man, my money will be on them getting it wrong. Irrespective of who wins the US election, they will inherit a fiscal mess!!! The best three performing sectors were Materials, Retail and Industrials while the worst three were Utilities, Energy and Banks. 

Remain nimble, contrarian and cautiously pragmatic with elevated global macro risks!!!


........
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.

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.