We were looking for a possible better low today, and we certainly have that, said Clifford Bennett of Herston Economics. The outlook is for a major low to be put in place today Bennett said. While many are bearish equities because of higher oil prices, the reality is that businesses will have to adapt, because oil is going a lot higher, to US$145 perhaps this year. Global growth will remain strong nonetheless and the sell down in the equity market simply represents a great buying opportunity.
Gold and Oil are still favoured, and the US dollar is having that weakness that was suggested. The Euro and Australian dollar remain the favourite currencies at Herston Economics.
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