Sunset Strip | Aussie market pulled back on good volume as it struggled to support these multiples with below par results
Sunset Strip | Aussie market pulled back on good volume as it struggled to support these multiples with below par results. The rising volatility and short covering keeps investors guessing which way the stock price is going to move. Some stocks saw selling as the growth did not live up to expectations while other stocks in declining outlook were up on short covering. RBA minutes made things clear as mud on why they decided to move in Feb when there was no change in bias in Dec. The key point out of the minutes was that RBA wanted to move on Feb or Mar and they chose Feb. This means the odds of Mar cut is very unlikely. RBA's change in bias is unlikely to improve anytime soon and more likely to lead to an Apr rate cut. We continue to suggest that investors take profit in mid to small cap stocks with reporting season risk on stretched multiples and/or low yield. We remain positive long term and suggest keep holding large cap high yield stocks. (VIEW LINK)
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