What caught my eye – May 2015

Here’s what we’re seeing…

1. Defensive yield names have underperformed the market despite cash rates being cut to record lows;
2. Equity market has established a new trading range with 6000 being the ceiling;
3. Equity raisings – primary and secondary, are increasing as the market fails to break recent highs;
4. Bonds have sold off aggressively as the deflation threat subsides;
5. Commodity stocks have led commodity prices;
6. Gold remains range bound reacting to movements in the bond and currency markets;
7. Long term short positions are losing conviction;
8. Unwind of consensus macro trade very evident – short resources, commodities and long the USD;
9. Quant funds are very aggressive on any buy/sell signal; and
10. AUD appears to be driven by offshore rather than domestic events.

This promotional statement has been prepared by Discovery Asset Management Pty Ltd ACN 168 787 353 a Corporate Authorised Representative No. 456684 of Channel Investment Management Ltd ACN 163 234 240, AFSL: 439007. This promotional statement is provided for information purposes only. Accordingly, reliance should not be placed on this information as the basis for making an investment, financial or other decision. This promotional statement does not take into account your investment objectives, particular needs or financial situation. While every effort has been made to ensure the information in this promotional statement is accurate; its accuracy, reliability or completeness is not guaranteed. Past performance is not a reliable indicator of future performance.