How far does the market have to fall before value emerges

How far does the market have to fall before value emerges? So far this month, the Australian market has corrected just over 4 per cent. A number of factors have driven the falls, including themes that we have been talking about for some time such as slumping iron ore prices, China uncertainty and the prospect of rate rises in the US. Despite the small correction, equities as an asset class remain popular and generally well-bid, with high cash levels and the search for yield providing support. We see current value on the All Ords as 5,300, and we believe the market would have to have a more substantial correction for us to get excited about value in the market. Still, looking further out, the Australian market is still relatively well placed relative to offshore markets in terms of the return outlook. (VIEW LINK)