From the AFR:
Citi’s co-head of equities in Australia and New Zealand, Adam Lavis, said that over the past three weeks there has been a “substantial” increase in the amount of foreign money being invested in the Australian stock market.
…He said that while he could not reveal the exact boost in funds flowing into Australia via Citi’s equities team, the bulk of money was being invested in listed real estate with high yields as well as health and mining companies with US dollar earnings.
I certainly get the yield chasers, though really, they’re not chasing yield if they have any sense. These flows are usually unhedged and the dollar is going to wipe out any yield as it keeps falling. They’re chasing capital gains as others chase yield, with a quick exit plan if the dollar weakens.
As for buying miners, that’s plain dumb unless it’s searingly hot money. They don’t don’t feel they are hedged as mining earnings are boosted by the falling dollar, but only if it falls faster than commodities.
