Sunset Strip | Aussie market bounced hard to catch up some relative underperformance to the rest of the world in recent week

Sunset Strip | Aussie market bounced hard to catch up some relative underperformance to the rest of the world in recent week. The key short term driver for the market is about what ECB will deliver to fight off deflation, improve growth and deliver jobs. The problem is that there is a substantial part of the market still does not trust ECB to deliver and/or does not believe that Euro QE will deliver inflation, growth and jobs. The movement in spot gold to $1300 is telling you that market feels the risk is high. We are still in the camp that ECB is most likely going to deliver below market expectations with a caveat of we will do everything needed. RBA is very unlikely to cut rates before the budget when everyone knows that any potential improvement in sentiment will get killed by the tax reform and the budget plans. Tread carefully....2015 is about avoiding the blow ups and not being a hero!!! (VIEW LINK)