Overview
The ASX 200 Accumulation Index returned 2.50% over the six
months ending 31 December 2014
S&P
ASX 200 Accumulation Index
Outlook
The outlook for the Australian sharemarket is subdued. From a
valuation perspective, the ASX 200 is currently trading close to
the long term average (as a multiple of earnings). With the market
trading around fair value, an improvement in earnings is required
to lift the market higher. Given the current economic conditions,
any improvement is likely to be modest and uneven.
Although commodity prices have fallen sharply, we expect the
downturn in China to continue, forcing many analysts to further
revise profit expectations for the resources sector. Although share
prices have already fallen sharply, further falls are likely.
