Morning Report Tuesday 9 February 2016
On Friday night the Dow fell over 200 points yet, yesterday, the ASX200 put in an excellent performance, opening down around 50 points but closing down less than one point. Market Matters maintains its belief that this relatively solid local performance will continue during 2016; we believe it will be the first year in over a decade when the local market outperforms its American equivalent.
Unfortunately, outperformance locally coincides with a significant number of Australian retail investors having allocated funds to international markets for the first time in the last few years.
Market Matters still expects the S&P500 to test the 2016 lows, around 4-5% lower, but any weakness in the US is likely to generate buying opportunities locally; we anticipate more days like today.
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