Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market maintained the negative global sentiment and delivered a very slight negative day to cap five negative days for the week and the worst weekly performance for three years. While I was traveling around Victoria with the Baillieu Holst team over the week, retail investors were very concerned about the volatility and the macro environment more than ever before. Investors are in no doubt that the economy is on the decline and there is a property bubble in certain parts of NSW and VIC. Forget the politicians and the bureaucrats, the masses always work it out. The key risk that has turned up recently to shake the market is the bond market selloff. The central bankers have been able to keep rate down using multiple tools, but the bond market is now revolting against them. If the bond yields continue to recover, then cost of debt and risk of liquidity crunch will rise. We can’t see this remaining free of central bankers influence as currency wars are too far down the road. (VIEW LINK)
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