Morning Report Tuesday 8 April 2014
"Sell in May and go away": should we be worried or do opportunities loom?
Another poor night on Wall Street as nerves continue to shake around valuations in sectors of the market without any macro news - back to normality perhaps? As the free money ride for equities comes to an end and people discuss interest rate rises, we are simply witnessing a value correction. One we have been predicting for a number of weeks and should come as no surprise.The Australian market has been outperforming during this NASDAQ-led correction, as we have only a few stocks exposed to this sector, five of which we discussed yesterday. In addition, stocks that have run hard and are yet to prove lofty prices are likely to see further profit taking e.g. Magellan Financial Group (MFG). As most people start worrying about the NASDAQ / valuations, I prefer to start to evaluate opportunities.
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