Key points are as follows…
· Global, and particularly Australian, shares have seen a bit of a pull back over the last month which could have further to go in the short term.
· However, what we are seeing is likely a correction as opposed to a new bear market. From a fundamental point of view the cycle still looks okay with no sign of the overvaluation, overheating economic conditions, onerous monetary tightening or investor euphoria that normally precedes major bear markets.