What Matters Today: Is it time to “tweak” our resources exposure?

The ASX200 trod water on Monday, although there were ongoing clear signs of “buying into weakness” with the main index reversing losses to extend its recent recovery – the Australian market is only 2% below its all-time high, having quickly dismissed the recent market jitters courtesy of the Yen Carry Trade unwind and a potential US recession. As we often trot out at MM, the market doesn’t go down without the banks. Following Westpac’s solid Q3 update, we saw CBA again post fresh all-time highs and WBC fresh post-COVID highs with the “Big Four” up an average of +1.25% – the Banking Sector looks good, which by definition suggests the ASX200 will be testing its all-time high over the coming weeks.

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