Morning Report Thursday 3 September 2015
Another fascinating day in the markets! Price action continues to support our belief that the Australian market is in a strong ‘buy’ zone. As reported on Tuesday, our analysis of past time cycles adds additional support to our current view of the market.
Investors withdrew $27.3bn last week from Mutual funds which is the most since June 2013 implying it will take some stability in the markets before the fuel for another surge in equities re-enters the market.
With China's closed for the next 2 days markets relaxed last night assisting a 1.8% bounce in US stocks. If US stocks follow their recent pattern of recoveries from +10% falls since the bull market began in March 2009, late December is when we should witness fresh all-time highs in US stocks; interestingly, seasonally a very strong time for equities.
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