Be ready to strike when the price is right

Chief Investment Officer and founder of Aitken Investment Management
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In terms of tactical (i.e. short-term) equity strategy, I remain cautious on Australian equities, feeling a May through July pullback to the 5100 to 5200 range is likely and, potentially, already underway.

We have tried to position investors for this pullback via warning on high growth momentum names, downgrading the bank sector to hold, and downgrading many individual stock recommendations from buy to hold.

I feel the falling iron ore price, weak post budget consumer confidence, domestic data fade, earnings downgrades, falling bond yields and the heavyweight bank sector being ex-dividend will all be factors driving the pullback.

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