Quant Strategy Model Portfolio | January update - Managing risk of Central Banks | We maintain our positive view that the market will recover from the recent...

Quant Strategy Model Portfolio | January update - Managing risk of Central Banks | We maintain our positive view that the market will recover from the recent profit taking on geopolitical, currency and global growth worries. We see short term risk in high market expectations of ECB stimulus due to substantial outperformance of European markets over the past two weeks. We expect domestic consumer confidence to remain low and currency to trend below 80 cents. The falling energy prices and currency in the low 80's will allow the RBA to remain unchanged with any potential rate cut consideration pushed back post 2015 federal budget. The yield differential and currency stabilising in the high 70's will bring Australian high yielding equities back in favour of global investors. Portfolio changes: AGI and IIN were added while CCP and SPK were removed. (VIEW LINK)