Big day for the Trump ‘Reflation Trade’
As we covered yesterday afternoon and in more depth this morning, the Trump reflation trade is certainly back on the table and the sector performances we saw overnight in the US and again today here in Australia highlights the areas that should benefit most as global growth ticks up…The three sectors to benefit most on our market today were the materials, Healthcare and the Financials. We’re heavy in two of these sectors and are stalking a decent entry level in the third. The weakest link as expected were these defensive yield type sectors that we continue to think will struggle in an environment of higher global interest rates…
Source Bloomberg
Whatever way you slice and dice it, it was a very strong performance by the market today with strength on the open sustained for the remainder of the day. We had a range of +/- 53 points, a high of 5776, a low of 5723 and a close of 5776, up +71pts or +1.26%.
ASX 200 Intra-Day Chart
ASX 200 Daily Chart
From a stock specific point of view, and we discuss this in our weekly video which will be out to subscribers by tomorrow, Ansell (ANN) was one of the better performers in the Healthcare space and a stock we like at current levels. A pullback from $25 down to sub $21 looks encouraging with a move back up to $25 at least, a strong possibility.
Ansell (ANN) Daily Chart
Have a great night,
The Market Matters Team
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