Mathan Somasundaram

Sunset Strip | Aussie market fought back against substantial US volatility and negative global sentiment to finish flat. After recent downgrades to growth outlook, we expect global investors to return to Aussie bonds and equity dividend yields due to the substantial yield differential to the rest of the world. If the major equity market risk/return were measured as a western movie...Australia and NZ would be GOOD, US and China would be BAD while Europe and Japan would be UGLY. The flow of money will continue to search for the highest yield with lowest risk....expect it to come back to Australia soon...may be already in play. We are currently trading on long term fair value multiple while offering substantially good yield and stabilising currency. The market continues to bounce everytime it gets below fair value as seen in the past week. Trading idea of the day: CarSales.com (CRZ). Thursday's Thematic TMT Pick: Telstra (TLS) (VIEW LINK)



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