Sunset Strip | Aussie market moved positive on yield chase driven by anaemic global growth
Sunset Strip | Aussie market moved positive on yield chase driven by anaemic global growth. We are still amazed at the market's recent move away from yield on very scant growth outlook. It is no surprise that the reality of the anaemic global growth outlook will continue to support yield investing. We are currently trading near the long term fair value multiple while offering substantially good yield support with currency stabilising. We continue to feel that RBA is currently trying to curb asset prices (i.e. house prices, equity markets etc.), so that they can cut rates in mid-2015 to stimulate a stagnant domestic economy. The continued global growth worries will move the flow of funds to the Australian equities with falling bond yield outlook. Declining growth outlook, OPEC maintaining supply and Shale in US is likely to keeps Oil prices at very low levels for an extended period of time despite geopolitical risks...it is a bonus that it hurts ISIL and Russia. Trading idea of the day: CarSales.com (CRZ). Wednesday's Star Performer: Vita Group (VTG). (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...