ASX fakeflates through 6000

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The massively overheated Australian dollar is pulling back a bit this morning:

Bonds are bid after last night’s shellacking:

XJO has recaptured 6000:

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On a cool 20x NTM PE, the highest since 1999 and the greatest bubble of all time, until today:

Big Iron ore still running and looks positively cheap with Materials on a shockingly low 15x NTM PE:

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Big Gas is grinding higher:

Big Gold has failed again:

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Big Banks are the next faker, surging into the fake sector rotation:

Now on the highest NTM PE ever:

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As Big Chunt parties on the very disappointing housing stimulus:

Next up for the Great Fakeflation is a fake inflation scare as an entire financial cycle is played out in a strange fantasy lasting a few months.

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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.