Morning Report Friday 18th March 2016
Resources have become exciting and scary - fingers MUST be on the pulse.
At the time of typing this report the US stock market is now actually positive for 2016, and only 5.1% below its all-time high of mid-2015.The S&P500 has aggressively rallied 12.8% in just 6 weeks after January / early February felt like Armageddon for stocks.We remain bullish on US equities targeting the above mentioned all time highs but from a risk / reward perspective we no longer find the market particularly attractive.The market has transitioned from a "glass half empty" to "glass half full" mentality extremely quickly as China has dropped from the headlines.
The ASX200 has been propelled 9.8% higher over the same timeframe with both the banks and resources taking it in turns to lead the charge.In our view, the resources space has become far more attractive as our anticipated fall in $the US is unfolding nicely.The $US has now fallen 5.7% from its December high helping the $US denominated underlying commodities and the strongly correlated Emerging Markets Index.We remain bullish the Emerging Markets Index targeting further 5-6% upside BUT the majority of the move has unfolded
Show more...
