Dash for trash sends ASX to post-GFC high

David Llewellyn-Smith

Tuesday 11 June 2019

The Aussie dollar is stable today:

Bonds are a little bid:

As XJO powers to an 11 year high. Monthly chart below:

Now trading on 16.5x, plenty of room to blow more bubble as earnings don’t grow but the multiple does:

Dalian is nuts:

Big Iron up:

Big Gas is up with oil:

Big Gold down:

Big Banks are tearing it up on the dash for trash:

Big Realty too:

I can see this blowing higher now as earnings stall, bond yields fall and the equity risk premium skyrockets.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.