As a modest follow up to our notes yesterday regarding our trimming of the Aussie share exposures.
The below quote is a good summation of our thinking: much of our analysis has revolved around will they won’t they make an error regarding US monetary policy, and to a lesser extent the European central bank.
And the Aussie market is the risk on market of choice, alongside the AUD. The US benefits in a flight to safety response, and we are already underweight the US at the DAA sub-asset class equity level.
Hence if you are worried about US growth, you should also worry about Australian shares.
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