Sunset Strip | Aussie market remains just above fair value while looking for catalyst to move
Sunset Strip | Aussie market remains just above fair value while looking for catalyst to move. The RBA wants currency down to 75 cents while telling everyone to be optimistic and the government to get real. Treasurer for his part came through at the end of the day and flagged deficit to jump some 50% from the previous year and has started the budget downgrade cycle from day one. 10 year bond yields are close to 20 year low levels while grossed up dividend yields from the major yield stocks are nearly double that. History shows that the last time we were at this low bond yield level, the market started a two year bull market run on yield chase. We see over $8b in dividends to flow back into the market over the next week while the mid-year budget update on Monday could be another snake oil salesman job. History is on the side of positive return in the last 2 weeks of December. (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...