Good Morning,
So…
We feel “battered and bruised” of late, with the ASX down from 5,600 to 5,230 over the past two weeks.
The nearly 8% correction has been “savage” and is driven by the lacklustre growth in EPS growth over the AUS reporting season, failure by company directors to lift DPS (Dividends Per Share), conservative outlook statements and inability by central banks to provide additional stimulus.
So is this a trend or a “blip”?
It will all be driven by the US fed and “cheap money”………….
If US interest rates rise and will no evidence of another quantitative easing, money will become more expensive, driving asset prices lower.
We truly are in the view that the US fed will not raise interest rates this month and markets will rebound.
Today, we will be attending Swift’s (SW1) investor lunch and management are currently undertaking a road show, seeing small-cap funds and instos.
For those that would like an update, please don’t hesitate to be in touch.
Last week, we also hosted Damian Arena, Managing Director of IODM in the office for a PEAKTV interview
Here's the link: http://www.peakassetmanagement.com.au/peaktv-interview-with-damian-arena-managing-director-of-iodm-iod/
We expect a strong rebound today, largely driven by BHP, RIO, Banks and Industrials
The SPI is up 42 points this morning…
Niv Dagan is an Executive Director of Melbourne based boutique funds management and corporate advisory firm, Peak Asset Management (www.peakassetmanagement.com.au). He is also a regular financial commentator on Sky Business
