Switzer on Saturday

Best weekly levels for Oz stocks in 10 years!

Founder and Publisher of the Switzer Super Report
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Friday Close
Change %
Week Change %
Dow Jones
S&P 500
ASX 200
Data for week commencing 18 June 2018

Fears about Trump’s tariff talk, trade war tension and Telstra were big negatives for the stock market this week but our S&P/ASX 200 index defied the Dow’s eight-day losing streak to push into 10-year highs! Why? Here’s a list of reasons I put forward on Thursday in my Switzer Daily column:

  • The lower dollar that has come with US interest rates rising and the greenback moving higher. A lower dollar is good for our economic growth.
  • Morgan Stanley thinks foreign investors are “parking their money” here, with the Euro threatened by trade war talk.
  • Some Chinese demand for expensive US goods could be diverted to Australia in a trade war, which could be good for education sellers and even beds from the A. H. Beard company, which already sell its products in China.
  • China could also boost its demand for Aussie LNG, if the USA is to be punished for Trump’s tariffs.
  • Also, if China’s economy is threatened by a US trade wall, it might stimulate its economy, which would pump up demand for the likes of our coal, iron ore and other mining products. And I guess Chinese tourists could be told to give the USA the flick, which would help us.

But the big one was the re-loving of our bank stocks, which started Thursday week ago, when CBA hit its recent low of $67.22. It finished on Friday at $73.86, which is a 9.8% turnaround!

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