Sunset Strip | Aussie market recovered some of the post OPEC bashing after RBA left rates unchanged

Sunset Strip | Aussie market recovered some of the post OPEC bashing after RBA left rates unchanged. RBA left rates unchanged while more economists are now forecasting rate cuts / high unemployment in 2015 like what we have been saying for a number of months. Commodity prices will stabilize at some low level, but expecting it to recover substantially would be naïve given the move by OPEC and the big miners. Despite being positive on the long term, we see short term government risk with tax white paper, financial sector inquiry and mid-year budget update expected in the next few weeks. Historically, recovery above fair value after a pullback has been a positive trend for the market. Given the market closed above fair value today, we think it's time to cautiously start to accumulate. The risk-averse investor is more likely to remain on the side lines till mid Dec to get past all the domestic macro risks. (VIEW LINK)