Sunset Strip | Aussie market breaking post GFC records by delivering 10th straight positive day on the back of higher commodity prices and Greece/Euro...
Sunset Strip | Aussie market breaking post GFC records by delivering 10th straight positive day on the back of higher commodity prices and Greece/Euro potential solution. RBA rate cut yesterday was explained by removing the period of stability outlook and replaced it with expect more cuts while currency remains above fundamental value due to below trend growth to last longer than expected and higher unemployment than expected. We don't disagree with any of that as we had similar view since May 2013 when we wrote about the Tidal wave of unemployment and rate cuts coming in 2015. We maintain our long term view of the market running to 6500 by 2016 on dividend yield thematic. But in the short term, the market has reached our profit taking level of 5700 for small to mid-cap growth stocks due to valuation and reporting season risks. Currency has already bounced back, Bond Yields recovered and the Volatility Index is moving up again. Stay nimble, the market momentum locally may take a hit soon!!! (VIEW LINK)
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