Sunset Strip | Aussie market continues the recovery from fair value (i.e
Sunset Strip | Aussie market continues the recovery from fair value (i.e. after OPEC carnage) with slightly better domestic data. Brokers are now jumping over each other to be biggest bear and call for the earliest and the biggest RBA rate cut in 2015. This is after majority of them were calling for a rate rise just a few months ago. We maintain our view from three months ago that we expect 25-50 bps rate cut next year. Despite the short term government risk with tax white paper, financial sector inquiry and mid-year budget update expected in the next few weeks, we turned positive as the market bounced off fair value (i.e. on Monday's close) after pricing in very low growth outlook. The market is hoping to hear about substantial QE program from ECB tonight. There is nothing like free money to drive up equity markets....don't fight money printing!!! (VIEW LINK)
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...