Near-Term Risk-Reward Not Attractive For Australian Equities: Macquarie

The near-term risk-reward for Australian equities is not particularly attractive, according to Macquarie analysts who see a risk of a major correction. Jason Todd and team at Macquarie in their August 11, 2015 research report titled: “Reality Bites” note the Australian market requires new leadership before they turn bullish. Despite positives, sentiment remains fragile in Australia Todd and colleague point out that there are several positives in Australia such as reasonable earnings growth at 7-8% and strong cash flow trends. However, the analysts point out that A$ continues to weaken and policy makers have the capacity, if not a strong…