Maybe it is the onset of those cold wintery mornings, but for the first time in almost a decade, I am feeling a little cool on the Aussie stock market. Not cold, but cool. I am thinking that it may be time to take a little bit of money off the table.
Arguably, this view doesn’t make a lot of sense, because US and major European markets keep making new highs. The correlation between the Australian sharemarket and international markets is so strong, as this graph from the Reserve Bank shows (US red, Australia black, World blue).