Local market ran into a surprise smashing with every sector in the red. US market risk with VIX jumping 20% intraday and Tech selloff spooked the market…while Japanese inflation proved that the low inflation outlook is a global problem. July count sits at 10 up days and 10 down days…in line with our flat outlook for July. But be nimble in August with reporting season ahead...US market profit taking risk remains elevated!!! The best performing sectors were Telecom, REIT and Energy while the worst performers were Gold, Health Care and Industrials. On the sector/stock front….(1) LYC continues the move in recent week as rare earth comes back in fashion (2) FMG moves higher as they target even lower costs (3) BKW bounces after trading update (4) SLK moving up on new routes (5) BWX runs into profit taking on high growth stocks (6) WEB was smacked on result update running on accounting questions (7) OGC result over shadowed by sovereign risk (8) Miners remains the place to be for the reporting season (8) Energy costs and strong currency will play big on outlook statements during the reporting season ahead!!!China seems to be stable…..compared to US and EU…I know that is a low base…but that is supporting commodities. Copper on fire while Iron Ore and Oil doing well.US government delivered another failed health care plan while congress locks in the president into sanctioning Russia. The “Art of No Deals” continues to confuse the western countries while eastern countries are used to presidents with inherited wealth and their families going wild. One of the big brokers have called the top in AUDUSD…reason is that we are underestimating the US Fed and overestimating RBA. RBA is going to do nothing. US Fed is going to go forwards slower than expected…it may change in 2018 when economic risk starts to rise...but not in 2017!!!
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2017 - Now > Blue Ocean (AUS) > Market Portfolio Strategist 2012 - 2017> Baillieu Holst (AUS) > Head of Strategy, Quant and Data Analytics 2009 - 2012 > Bell Potter / Southern Cross (AUS) > Head of Quant and Data Analytics 2007 - 2009 > LIM...
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