Fund managers are still holding a lot of cash because they still believe the correction has to come and this week certainly offers plenty of opportunities for stock markets to test the resolve of investors.
I always think our dollar can be a canary in the coalmine and there certainly has been some squawking action there.
The Oz dollar was 93.7 US cents at the start of last week and it starts this week at 90.7 US cents — that’s a 3-cent slide in a week! And you might have forgotten that our dollar started the year in the 87-cents region. Then, it was China slowdown related.