Sunset Strip | Aussie market got belted without institutional investor buying support to withstand the global investor selloff
Sunset Strip | Aussie market got belted without institutional investor buying support to withstand the global investor selloff. There were a number of factors in play today (1) Roubini Global Economics said they expected Australian growth to hit 2% next year with China slowdown and our currency to drop by 20% (2) Global investors always short Australia and go long safe US or recovery play Euro/Japan when playing China exposure (3) We had index changes with some small stocks going in and out of the indices (4) School holidays started this week and most institutional investors are away (5) Global brokers who had the portfolio trade knew there will not be enough buying support and took the index down anyway. Trading idea of the day: Henderson Group (HGG). Monday's Macro Stock Pick: Flight Centre (FLT). (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...