Sunset Strip | Aussie market breaking records with 11th straight positive day on the back of global investors coming back into the market post RBA action. The average turnover since RBA announcements has been over $6b per day. As a broker as much as I love the fact that the turnover is near pre GFC standard, it is driven by global chase for yield despite currency risk. Assuming what they have guided to now is what they are seeing, we see RBA making more cuts to take rates below 2% in the next 12mths. Equity markets with sustainable dividend yield above 4% fully franked will continue to experience higher prices on relative return basis. We maintain our long term view of the market running to 6500 by 2016 on dividend yield thematic. We continue to like the large cap stocks with greater than 4.5% fully franked yield outlook. Stay nimble, the market momentum is being pushed by global investors on yield chase. When that stops, there will be profit taking!!! (VIEW LINK)
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