Australian Investment Blog

The banks look very attractive for the next 4 weeks with dividends looming

As all of you are aware, I have been bullish over recent times, looking for at least a 4-5% correction after the savage 558-point (9.8%) correction. There are a few important points to clarify about my current view on the market.

I am positive the local banks at current levels, with dividends looming for 3 of 4 major banks in November – charts 4 & 5.

I remain negative the major 3 local Iron Ore producers, anticipating fresh 2014 lows in coming weeks.

I still believe we will see fresh recent lows from the S&P500 and Dow Jones – chart 3.

I am 50-50 the Russell 2000 for coming weeks / months, we may have seen a major low – chart 2.