Joe’s Viagra Budget will help these stocks

Founder and Publisher of the Switzer Report
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The Budget brought a week where the stock market went up 100 points and companies such as Harvey Norman and JB Hi-Fi rode the $20,000 immediate tax write-off for small businesses. But what other companies will be stimulated to higher levels, thanks to Joe’s Viagra Budget?

Picking green shoots

The wider implications and multiplier effects of this Budget have been underestimated and many are ignoring the green shoots I’ve been pointing to for over six months – such as job ads going up 11 out of the past 12 months. Then there’s the building boom, with dwelling approvals at all-time highs. And retail has gone up 10 months on a trot. Adding to that, we saw how retail stocks reacted to the Treasurer’s gift to small businesses with turnovers under $2 million.

20150518 - retailThe only damn fly in the ointment is the Oz dollar and that will be a barrier to better stock prices until the Fed is close to raising interest rates and/or the RBA comes out with another rate cut, which is becoming increasingly likely with the Oz dollar over 80 US cents. It started today at 80.37 US cents but what do you expect, with every country out there trying to keep their currency down to get the old J-curve effect that Paul Keating talked about in the mid-1980s.

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