Sunset Strip | Aussie market closed on a slight positive in low turnover after being up and down through the day

Sunset Strip | Aussie market closed on a slight positive in low turnover after being up and down through the day. The turnover took a big dive after the last 2 days were near $7b. We may have seen the end of the short covering from the global funds for now. RBA has left the market in no doubt that it is a matter of when, not if the interest rates are going to be cut. If the post GFC trend is anything to go by, the risk return balance will force corporates to use cheap debt to drive share buy-backs and M&A. Asset values will climb to bubble territory while real wages and employment will continue to fall. We continue to suggest that investors take profit in mid to small cap stocks with reporting season risk on stretched multiples and/or low yield. We remain positive long term and suggest keeping holdings in large cap high yield stocks. (VIEW LINK)