Sunset Strip | Aussie Afternoon Institutional Market Wrap

Market moved up again on positive global sentiment to deliver third straight positive day. The local market has now reached near 18mth high on price index while making new all-time high on accumulation (i.e. including dividend) index. The main market in focus is the US and history shows that there is a substantial relationship in Q4 performance and January returns. Since the GFC (i.e. 2008), every Q4 single digit return (i.e. S&P 500) in the US has delivered the opposite return in January. And we are looking at a single digit Q4 positive return in 2016. 2010 and 2011 were the exceptions when Q4 returns were double digit and the market ran with the momentum in January. In the last decade US markets have only delivered all positive quarters in 2 years (i.e. 2013 and 2014) and both times we had profit taking in the following January. We are in line to deliver 4 positive quarters in 2016. For the full report… (VIEW LINK)