Market Manager | October update – Central bankers take centre stage

Strategy outlook: We maintain a bullish long term view on the Australian equity market while short term volatility driven by multiple central banks offers another opportunity to buy into thematics at a lower cost. Global growth slowdown has driven major economies back to currency wars. We remain positive on the yield and currency trade, while domestic economic deterioration creates more volatility. We continue to expect interest rates and currency to head down with growth outlook, while unemployment and property bubble remain the key risks. Current quant strategy model portfolio: Materials – large (BHP); Transport – large (SYD, TCL); Consumer Services – mid (ALL), small (AGI, RFG, SGH); Media – mid (FXJ), small (VRL), micro (ICQ); Health Care – large (CSL, RHC), mid (ANN, COH, RMD), small (GXL, MYX); Banks – large (ANZ, NAB, WBC), mid (BEN, BOQ); Diversified Financials – large (MQG), mid (HGG), small (BTT, FXL, IMF); Telecommunications – large (TLS), small (MTU), micro (VTG). (VIEW LINK)