RBA rates
Our market, like the US market, taking commentary to be quite dovish at the margin, even if it doesn’t entirely square with what our read of the underlying inflation story requires, or what the CB’s ultimately intend.
Growth sectors (IT, discretionary) did well today, and REIT’s staged something of a mild come back, consistent with the lower rates bolstering longer duration assets (like property) or secular growth stocks (like IT, discretionary).
We think the market has gotten both the Fed and the RBA wrong, this is not a dovish pause, a signal to a lower, less intense rate cycle, and as such, are happy to fade such strength at the margin.
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