Rudi's View | Aug 31 2017
This is part two of this week's Weekly Insights (part one was published on Monday and Wednesday respectively in email and on the website):
-CBA And The Premium Gone
-September S&P Index Rebalancing
-Rudi On BoardRoomRadio
-Investing: The USD Did It!
-Energy Sector - August Report Card
-Rudi On BoardRoomRadio (the updated version)
-2016 - L'Année Extraordinaire
-All-Weather Model Portfolio
-Rudi On TV
-Rudi On Tour
[Note the non-highlighted items appeared in part one only]
Investing: The USD Did It!
Market sentiment and capital flows are increasingly being reflected in FX markets, which then flows onto equities worldwide. Just think about how the persistently stronger-for-longer Aussie dollar has been holding back share prices for international players such as Aristocrat Leisure ((ALL)) and CSL ((CSL)) in the Australian stock market.
Equally, there is more than a fair argument to be made that at least part of the refound popularity for base metals has occurred on the back of relentless downward pressure on the greenback.
Here's where the chart below from Morgan Stanley analysts gets extra-interesting as the lower USD impact post June has predominantly flowed into base metals, or so it appears, not so much into oil, or even gold.