The outlook for global equity markets, and especially the Australian market continues to improve. Australian equity markets in particular are still far below their correct fundamental value. Gold and oil, like other commodity markets, appear ready for further strong gains. The Australian dollar is comfortable in this higher band but is still targeting US$1.0800 this year, according to Clifford Bennett of Herston Economics.
Morningstar Japan K.K. (OSA:4765) and the Gomez Consulting Co., Ltd. (OSA:3813) have mutually agreed to the acquisition through stock swaps of 100% (one-hundred percent) ownership of the Gomez Consulting Co., Ltd. by Morningstar Japan K.K. 2.2 common shares of the Morningstar Japan K.K. will be equal to 1.0 share of the Gomez Consulting Co., Ltd.
After some very strong gains the US equity market continues to cling to recent highs, and can be expected to move higher next week, according to Clifford Bennett of Herston Economics. Clifford remains bullish on equity, commodity and currency markets except for the US dollar. The overnight fall in the Euro is a stand out buy, and not even Egypt concerns can keep Gold down.
It is important to recognize that markets have yet to factor in any of the good news regarding robust growth, not just in china, but Europe and the USA as well. Expect the rally we had forecast to continue and even at these levels Australian stocks represent great value.
Building on our comments yesterdayt that markets would rally back just as hard as they initially fell on Egypt, Clifford Bennett of Herston Economics believes there is almost no reason on the horizon for any further declines. Perhaps the last of the pullbacks in equity markets, commodities and the Australian dollar have now been seen. Expect aggressive rallies in all asset classes from here.
All the economic news that matters, is good. China is performing strong, USA and Europe are improving all the time. There is no doubt after the great rally we have seen from last year that a correction was due, but the fear mongers have been served a great opportunity with Egypt, and are making the most of it. The thing is, I don't see China slowing because of a change of government in Egypt, i really don't, buy this dip, its a gift comments Clifford Bennett of Herston Economics.
Equity markets continue to climb, gold may well have bottomed for the year, and the RBA is sidelined. Clifford Bennett of Herston Economics talks about why higher food prices do not mean rate hikes, and the outlook for Australian equities remains very favourable.
