Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market opened slightly negative with profit taking despite positive global lead and worked its way back to close flat. We continue to feel that the two main global macro risks are now in the process of being managed out and that will drive markets higher. As we expected yesterday, we saw profit taking come through today, but the market optimism held it flat. If the US reporting season holds up into next week, our markets should continue to climb higher in the short term. RRL’s substantial outperformance today should be a flag on how good the Aussie gold miners are doing and how much cash are being generated through the margin at these spot gold and currency levels. Gold miners continue to look good going into the reporting season. The key risk themes market is scared about right now are consumer spending, too much debt and growth downgrades. Any stock showing these risks have already been mainly sold down, and if not, the result season could shine light on this and end up being painful. Stay nimble!!! (VIEW LINK)