ASX Macro View Week Ending 17 Feb

Chart below shows the S&P/ASX 200 (black) relative to the S&P 500 (blue).

Clearly the Aussie market is underperforming significantly, a topic dealt with here:

I’m tipping this underperformance to continue … obviously credit conditions are relatively tight here vs everywhere else which is positively awash with liquidity (add Japan to this list). Our key sectors have little growth – financials sufffering from weak credit growth while resources facing the double whammy of a strong currency and cost pressures.

In addition I believe the high AUD makes the market a good relative short. And I suspect long only investors with global mandates do not see buying the market with the Aussie at 1.07 as attractive.

So fairly sangiune for now. Would like to be more enthusiastic!

Published by


Analyst and Options Trader

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s