ASX bath of blood

The AUD has softened a bit this morning:

Bonds are still deludedas the curve mysteriously steepens:

XJO is plastered. It has a long way to fall before uptrend support:

Iron ore bashed:

Big Iron bashed. FMG has broken its head and shoulders top:

Big Gas in free fall:

Big Gold is going from disappointing to disastrous:

Though not so much as the Big Banks. WBC is at new two year lows:

Bye, bye Big Realty:

Blood everywhere and all we have doine is blow a few months froth off the top. Discounting COVID-19 is next.


David Llewellyn-Smith is Chief Strategist at the MB Fund which is very conservatively positioned for coronavirus risks. 

David Llewellyn-Smith
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Comments

  1. I would have thought that EVN and big gold would be a good bet and different from the rest of the market as they benefit from both rising gold & a falling AUD.

  2. So glad the Accumulation part of my Super has <10% exposure to ASX. Aussie bonds have been my hedge and I transferred a large amount of my Super to cash last November, as it was risk on left, right and centre.

    Plan to move it all into shares once this bloodbath is well and truly over. Not for a while yet…

      • Glad I moved so many shares to cash when I did, gains for the year are all gawwwwwwn…. previous gains locked in with rubbish interest rate, but locked in.

        Anyway, I’m only 40 so this is a very long game. I try not to switch options more than once a year and even then, only if there’s a strategic advantage; but risk was building and that just increased the likelihood of a pandemic/war etc tipping things over the edge into a full on bloodbath.

    • Same, last July, 80% defensive.
      I advised friends on Saturday to do it, now one of them is calling me for advice, her advisor is telling her to stay with shares, cos the market will recover, it always does, and they are a long way from retirement, how to argue this? We would be missing out on the dividends, so maybe makes sense?

    • @Torch
      @ Andrew

      I strongly suggest BE VERY VERY careful on bonds
      Yes they’ve been a ripper
      When ? And I’m not sure I believe they will turn it will be a blood bath

      Let’s keep an eye but I really like ASX around 5700

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