Sunset Strip | Aussie market continues to trade sideways for the 4th day in a row despite volatility in global sentiment
Sunset Strip | Aussie market continues to trade sideways for the 4th day in a row despite volatility in global sentiment. Turnover was just above $5.5billion. The market is stuck between stretched valuations on yield trade and underlying weak economy getting worse. The basic rules about housing bubble are (1) you do not talk about the bubble (2) you don't talk about the missing factors (i.e. employment growth and wages growth) that can sustain the bubble from bursting (3) you find new ways (i.e. super) to pump more investment to support the bubble (4) even though there is no bubble, make major government agencies to remove this non existing risk from hitting the financial sector (5) if it blows up, then protect the financial system and let the public take the fall. The equity market is stretched on all valuation metrics, but the central bank action to maintain historical low interest rates are forcing the market to trade at a premium due to the yield differential. (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...