Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market started very positive before dropping 2.5% from the intra-day high to the low while still managing to recover some losses at the close. The optimism on the open was driven by better commodity prices and rebound in the US markets. But as we alluded to yesterday, the US markets are stuck in a precarious technical position with growth worries and local investors were not going to take a big bet going into the weekend. As expected the market saw profit taking despite US rebound and the same sentiment was played out through Asia. US markets are at the end of the second longest bull market in the past 80 years. Our market remains close to fair value with no premium for the substantial yield premium but global uncertainties remains high. As we wrote at the end of December, “GREED IS GOOD, BUT PROFIT IS BETTER” …short term buy cycle is close, but the question is what is happening in the US markets. There is no need to rush. Time to wait and see and react!!! (VIEW LINK)
9 topics