The ASX200 clearly remains very jittery as we saw over the 2nd half of last week, whether the reasoning is “if in doubt sell” or “sell all rallies” the net result has been the same i.e. the markets struggling to make any meaningful headway. On a forward P/E of just 12.6x, the market is now ‘cheap’ while looking at the total shareholder return (TSR) expectation, which adds the difference between current levels with collective analysts’ price targets plus dividends we get a TSR of 23.6%, very attractive if earnings hold up – which is a big ‘if’ at this stage.
- MM expects another test of 6800 over the coming weeks but we still believe another major test on the downside is likely before Christmas.
- Hence we’re sticking with our mantra for 2022 – “ buy dip and sell the pop with the emphasis now towards the sell side of the equation”.
MM remains bullish the ASX200 short-term
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