Quant Strategy Portfolio | December update - Picking up quality on Christmas sale | We maintain our positive view that the market will recover from recent...

Quant Strategy Portfolio | December update - Picking up quality on Christmas sale | We maintain our positive view that the market will recover from recent profit taking on geopolitical, currency and global growth worries. At these levels, we continue to expect US recovery to remain subdued while Japan, China and Europe move towards further stimulus to drive domestic recovery. We expect the domestic federal budget uncertainties to remain, while multiple state elections drive more volatility. We expect domestic consumer confidence to remain low and currency to trend below 80 cents. If the currency remains above 80 cents by 2015Q1, we expect RBA to cut interest rates to force it lower. The yield differential will bring Australian high yielding equities back in favour. Portfolio changes: AAD, CCP, CCV, GXL, RFG and WBC were added while BTT, FLT, ILU, MQG, SWM and SXL were removed. (VIEW LINK)