To set the current scene, I’ve been warning that a rally testing time would eventually happen and now it has started. Undoubtedly, the professional traders who determine short-term market direction are using Spain’s leadership procrastination as well as street protests, Germany’s slowdown and weakish China data to question the market. Of course, sensible profit-takers will be saying it’s time to sit on the sidelines on a pile of cash until buy signals re-emerge. And they will eventually show up.
So back to the retail story that doesn’t look too promising, given the latest report from David Jones (DJS). The retailer saw a 40 per cent fall in profit for the full year and didn’t even have a shot at guidance! That’s a bad look.
Against that, if it can’t sell clothes and homewares to Aussie shoppers, it will sell real estate, with the Sydney and Melbourne CBD properties looking likely to be flogged for a figure speculated to be $612 million.