Well some variables that are driving market direction:
1. US Fed. interest rates higher for longer (long term mortgages largely avoid their impact)
2. Aussie RBA becoming cautious? can they avoid following the US Fed.? Many Aussie fixed mortgages expiring over next 12 months - suspect most sooner rather than later.
3. Baby Boomers & nearby ages - many inheriting wealth & unfazed by higher interest rates and likely to continue to consume - many keen to live in an ESG environment - there wealth is widely spoken about in the media from time to time - suspect no one knows just how many have this wealth?
The bottom line, interest rates will crunch society where it hurts the most!, meanwhile those with wealth will prop up the transition to improved ESG lifestyles & Lithium demand will continue to thrive - AKE is just one of the beneficiaries that will grow its business riding the EV wave.
As an aside, those that are jumping out of the market at present or being pounded to a point where financial independence is diminishing? has the RBA & Govt. considered how many may transfer to being pensioners relying in part or all for their income?
The RBA financial instrument appears awkward at best in economic management in these times!What changes to shorts might have resulted today? do they think interest rates are going to further clobber the markets?
What might shake the "shorters" tree, they ramped up to Mar.6th - ASIC reported a total 10 million plus? ASX Daily shorts indicate shorts have dropped below 500,000 daily since Mar.3rd.
On the sidelines awaiting the playout between US Fed./Shorters/AKE activity.
Expecting some very healthy winners to come out of the ESG EV revolution unfolding!
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