Sunset Strip (Afternoon Report) - Aussie market held flat despite the bank/budget scare stories and China/Euro worry

Sunset Strip (Afternoon Report) - Aussie market held flat despite the bank/budget scare stories and China/Euro worry. It may have something to do with today being the last day of the month before big two days of US/China macro data...or maybe not. Despite being positive long term, we turned negative on Apr 11th on valuation and macro worries. We maintain our positive view on online stocks REA, SEK, CRZ, IPP and JIN to outperform the market with despite US tech sentiment. Mixed US corporate/macro updates, rising Ukraine risk, China growth risk, Bank dividend cycle sell off, Stretched valuation and institutional investors coming back after 2 weeks holiday drives the risk/return balance towards profit taking mode. We expect US Fed to maintain tapering time table and China leadership to slow growth to reduce credit risk. Putin remains a big risk to Euro growth which is already struggling with deflation worries. (VIEW LINK)