Sunset Strip | Aussie market pushed ahead with bond yields pulling back and short covering

Sunset Strip | Aussie market pushed ahead with bond yields pulling back and short covering. Turnover was just above $5.2billion. The market today was driven by yield trade lead by financials as bond yield pullback while the market bounce forced a lot of heavily shorted stocks pop up hard on short covering after the recent pullback. Soon the market will begin to think about not getting a rate cut for a few months or may be after the budget? Will the current market multiples be supported if that happens? As we have been saying since the end of Feb that the yield differential and valuation multiples suggest that we will see profit taking in March. The big risk is that once we cut our rates and drop the currency, the economy will be like driving a fast car with no seat belts. When a black swan event happens with the economy sitting on asset bubbles, there are no buffers to protect it from a hit worse than GFC. (VIEW LINK)