Australian Investment Blog

Please excuse the lack of creativity in this morning’s report, but I have been at hospital all night after my son had an asthma attack – very glad it’s Friday! We have had a wild and exciting few weeks in the market which has unfolded almost exactly as we had expected, hence until we witness a change to the pattern I will be focusing on the below views.

I remain bullish on world equities, believing we are in the tail end of “Phase 3” of the equities cycle – see chart 1.

However, technically I only see another 7% upside in US equities prior to a 15-20% correction, this will correspond to the aggressive “Phase 4” of the cycle which is currently on track for the first quarter of 2015 – see chart 3 & 4.