Selfie Wednesday, page-34

International hedge funds are selling the index for a couple of reasons.

1) The ASX is seen as a proxy for China and as some of the ChinaA shares was included in the global MSCI index today the funds can get access to China directly - reason to sell off Oz.

2) The 4 major banks are also seen as a proxy for the housing market and the economy, o'seas hedgies see our newspaper headlines and it screams 'property bubble', they don't understand the fact that any slowdown will be a well-managed gentle downturn in prices (if at all in Sydney!) not to mention the RBA, APRA and the banks themselves are best placed to steward any downturn.

Our banks are otherwise held in the highest regard globally and come with a gold plated dividend. In terms of the bank levyg is a reason to sell-off, that is not an issue IMO. The banks have instigated as the rate increases (already underway at ANZ and WBC) for the investor loans will see to that if not already seen to.

Expect the banks' to be bought for the dividends soon.