Aus PMI’s fading into the night, with the November flash PMI weakening at the margin from last month, and below the 50 threshold (which indicates contraction).
Rates up enormously, transmission of monetary policy particularly effective given prevalence of ARM’s, and macro data likely to continue to worsen from here.
Part of the reason we are underweight Australian shares, preferencing international, where we think the risk reward is better, mainly due to a) US strength b) simple diversification.
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