Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market jumped up after spending the past 2 weeks trying to break below the yield adjusted market fair value level of 5600. The volatility index has broken it’s up trend, bond yields are beginning to lose steam from the recent bounce and currency is now running out of steam. Iron Ore was at the centre of market interest as China took an opportunist move to help Brazil and Vale by setting up more high grade / low cost supply from Brazil in massive ships. Market is once again close to 5600 level where we see the yield weighted fair value for the market. Time to BUY Banks (NAB, ANZ, WBC, BOQ), Global Diversified Financials (MQG, BTT, HGG), Telecoms (TLS, SPK, AMM, VOC, MTU) and Healthcare (ANN, CSL, RHC, SRX)…Banks expected to outperform Big Miners short term…more return than risk now!!! (VIEW LINK)