The YIELD PLAY feels like it needs a rest after TLS and CBA have both rallied approximately 10% in 3 weeks

Nicholas Forsyth

Market Matters

The YIELD PLAY feels like it needs a rest after TLS and CBA have both rallied approximately 10% in 3 weeks. Yesterday, we saw the market rally strongly for the 10th consecutive day, while both TLS and CBA were in negative territory at 3pm, they and the market simply need a rest. I have very mixed feelings at present on US equities as you all know, but the local yield stocks should remain supported if we get a correction overseas. The feedback I am getting from friends on US trading desks is they have not seen so much interest in Australian equities for years, I assume due to the low $A. Seasonally the banks have been up +0.3% in February, +2.5% in March and +3.2% in April. This implies we might be due for a rest now, but then possibly see CBA trading over $95 in March. Here are two scenarios that I have touched on previously. Both pay solid, fully-franked yield and have extra potential upside through possible takeover or merger opportunities SUN/BOQ and ASX See the full report: (VIEW LINK)


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Nicholas Forsyth
Director
Market Matters

Market Matters is an online investment and share trading advisory service designed for those that want to take their wealth further. We specialise in advice for active share market investors, including those new to the markets or those with a Self...

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