Sunset Strip | Aussie market pulled back despite RBA and China living up to expectations with no rate change and solid PMI

Sunset Strip | Aussie market pulled back despite RBA and China living up to expectations with no rate change and solid PMI. Aussie market was down 0.37% with turnover was just above $5.1b. The interesting trade today was the trimming of the banks and adding of the big resources as we suggested last Friday. BHP and RIO are now paying dividend yield higher than 10 year bond yield while offering capital appreciation to cater for the capital risk. Similarly after recent pullback WOW and WES are also in the same boat. Given the low capital appreciation available in Big Banks and property prices flattening, market will chase growth and yield from Big Miners and Big Retailers. It is good to see the Big Miners recover with China and support the overall balance of the market recovery. (VIEW LINK)