Equity Engineer – April 2015 | Employment White Paper: Commodity Boom to Manufacturing Bust

Market View: We maintain a bullish long term view on the Australian equity market to reach 6500 in 2016. The RBA move in February has made equities as the preferred risk/return option for investors wanting more than 3% return in a rising cost environment. We expect global investors to come back in substantial amounts when the currency gets down to low 70s. We see short term profit taking risk in the market after hitting post GFC premium valuation level (i.e.5900) with yield trade likely to get squeezed by rising bond yields. Preferred Sectors: Australian Gold Miners, Transport Infrastructure, Global Consumer Services, Diversified Media, Automotive Retail, Health Care, Banks, Diversified Financials, Property Trusts, Information Technology and Telecommunication Services. For all the macro views....check attachment